How Broadcom Is Reshaping VMware: A 2024 Case Study on Mergers and Job Loss

How Broadcom Is Reshaping VMware

The tech industry’s been kinda wild in 2024, honestly. Between the global economy being all over the place, a bunch of companies merging, and AI moving way faster than anyone was ready for — it’s no surprise that a lot of businesses are rethinking who they really need on the team. One company that’s been getting a lot of attention lately is VMware. You probably know them — they’re the ones behind all that cloud and virtualization stuff. So, after Broadcom bought them out, there’s been a ton of talk about possible layoffs and internal shakeups. And yeah, it’s not just rumors — changes are happening. So let’s break it down: what’s actually going on with VMware, are layoffs still happening, and what does all this mean for tech jobs overall this year?

Are Layoffs Still Happening at VMware?

A Quick Look Back

VMware isn’t new to layoffs. In fact, over the past couple of years, the company has made several rounds of staff cuts. In 2022 and 2023, more than 7% of the workforce was let go, mostly due to restructuring after Broadcom acquired them in a massive $61 billion deal. The aim? Improve efficiency and bump up profits — which almost always comes with some painful job cuts, especially in overlapping roles across both companies.

That said, in 2024, while VMware hasn’t officially announced another round of layoffs, there’s been a lot of talk — both inside the company and across the tech industry — that more cuts could be coming. And it wouldn’t be surprising. Broadcom has a track record of trimming the fat after acquisitions to keep margins healthy. People are bracing for more of the same here.

What’s Fueling These Layoffs?

The Economy Isn’t Helping

One major reason companies like VMware are making cuts is because of the economic headwinds. Inflation has stayed stubbornly high, and central banks’ cheap-money policies from past years have finally caught up. Tech companies that once had endless runway are now being told to show real profits. That means spending less — and unfortunately, that often includes reducing headcount.

According to Gartner, many tech businesses in 2024 are pushing toward automation and trimming middle management — which often gets hit the hardest during restructuring.

AI and Automation Are Changing the Game

Another huge piece of the puzzle is AI. VMware, like a lot of major tech companies, has been doubling down on artificial intelligence and automation tools. And let’s be real — when you invest heavily in automation, the jobs that were once critical start looking optional.

Roles in IT infrastructure, support, and even some lower-level managerial tasks are being replaced or absorbed into AI systems. VMware’s own tools are starting to offer more AI-based solutions that reduce the need for human intervention — which is great for innovation, but not so great for job security in those areas.

Why Are People Voluntarily Leaving VMware?

It’s not just layoffs — people are walking away from VMware, too. And that’s worth paying attention to

Post-Acquisition Vibes Are… Weird

Mergers always bring a lot of uncertainty, and the Broadcom acquisition hasn’t exactly eased nerves. Employees aren’t just worried about job security — they’re concerned about VMware losing the innovative spirit it was once known for. Broadcom has a reputation for being focused on the bottom line, and that shift in culture is rubbing a lot of longtime VMware folks the wrong way.

The Job Market Is Hot Elsewhere

Even with all the layoffs in the tech world, skilled workers — especially in cloud, AI, and cybersecurity — are still in demand. Thanks to remote work becoming the norm, VMware employees suddenly have access to global opportunities. That means they can chase better salaries, more flexibility, or simply a workplace that aligns better with their values.

In fact, a TechRepublic survey in 2023 found that around two-thirds of tech workers were actively considering a job change — mostly for better pay or more remote work options. VMware’s employees are no exception.

The Culture Is Shifting — And Not in a Good Way

Culture matters. A lot. And several VMware employees have taken to platforms like Blind and Glassdoor to share that things just don’t feel the same since the acquisition. There’s talk of low morale, leadership shakeups, and a stronger emphasis on cost-cutting than collaboration or creativity. When the vibe changes that much, it’s no surprise people start looking elsewhere.

It’s Not Just VMware — Other Big Names Are Laying Off Too
Layoffs aren’t isolated to one company. Across the board, tech companies are tightening their belts:

Amazon let go of 27,000 employees in 2023 and continues to cut roles in 2024, especially in corporate and Alexa-related departments.

Meta (Facebook) is restructuring too — moving away from the metaverse dream and focusing more on AI. That’s led to big layoffs in its Reality Labs division.

Google/Alphabet trimmed 12,000 jobs last year, and cuts are still happening in 2024, especially in advertising and other legacy departments.

Microsoft is refocusing on AI and has let go of people in its Xbox and cloud service teams.

Salesforce is streamlining operations after expanding into new ventures (like Slack) that didn’t quite deliver as expected. More layoffs are happening in 2024 as they focus back on their core CRM product.

Salesforce kinda went all-in on a few side projects — like when they grabbed Slack — but honestly, that didn’t really go as planned. It just didn’t hit the mark the way they hoped. So now in 2024, they’re pulling back a bit and laying off more folks while shifting their attention back to what they actually do best: CRM. It’s not super surprising though — when a big bet doesn’t work out, companies usually start trimming the fat and getting back to basics.

How AI Is Reshaping the Tech Job Landscape

What’s happening right now isn’t just about saving money — it’s bigger than that. AI’s kinda shaking up the whole tech industry. Stuff like helpdesk support, system admin tasks, even some beginner-level coding? A lot of that can be handled by AI now, or at least done way faster with AI tools helping out. That doesn’t mean every job is gone, but yeah, some roles are definitely being phased out.

And this isn’t just a maybe. According to McKinsey’s 2024 report, up to 30% of tech jobs could actually be automated by 2030 — and honestly, it’s already starting. I’ve even seen it firsthand in some teams. Companies aren’t just cutting people randomly; they’re building smaller, tighter teams that work with AI instead of trying to replace it. It’s not all doom and gloom, but yeah, things are moving fast.

Final Thoughts

2024 has been a rough year for the tech industry — and VMware is right in the middle of it. The Broadcom acquisition, economic challenges, and the rise of AI are all putting pressure on how the company operates. While VMware hasn’t confirmed new layoffs, the writing’s on the wall. Job cuts, whether official or through attrition, are likely to continue as they integrate with Broadcom and look for more efficiencies.

But this isn’t just a VMware story — it’s an industry-wide one. Tech giants are shifting their focus, trimming teams, and reimagining the workforce with AI in the mix. If you’re in tech right now, staying adaptable is going to be more important than ever. Whether that means reskilling, learning how to work with AI tools, or just keeping an eye out for healthier company cultures — it’s clear that the old way of doing things isn’t coming back anytime soon.

Eram N.
I have been serving web content with my passionate writing skills since 2020. My skills have benefited clients from 20 countries, resulting in 10x audience interactions, improved readability, and SEO-friendly content.