Broadcom CEO Hock Tan said that after acquiring cloud computing company VMware, Broadcom will move its headquarters from San Jose to Palo Alto. He also implemented strict in-office work policies for all employees, including those who benefit from VMware's flexible work-from-home policy.
Less than a week after completing its $69 billion acquisition of Palo Alto cloud computing company VMware, Broadcom began the process of significant layoffs.
The report shows that more than 2,000 employees will be laid off, according to WARN notices submitted to the California Employment Development Department, focusing on the elimination of more than 1,200 positions considered redundant at VMware's Silicon Valley offices.
Preliminary separation plans will take place on January 26.
Jill Turner, vice president of human resources at Broadcom, wrote in the notice: "The total number of employees affected at the above locations is expected to be 1,267." This will not result in the closure of the entire factory, but will only affect certain employees selected for layoffs. This planned action is expected to be permanent. Affected employees do not have the authority to displace or replace any other employee, nor will they be recalled to work. "
The company also expects to eliminate about 600 positions, according to regulatory filings in Washington state, Colorado and Georgia. Employees in several other regions will also be affected.
The 18-month acquisition received regulatory approval just days before the merger agreement was set to expire, bringing together major corporate and government entities that rely on Broadcom technology and VMware software, including Amazon, Google and Microsoft.
"Broadcom has a long history of investing in the businesses we acquire to drive sustainable growth," Broadcom CEO Hock Tan said in a statement shortly after the deal was announced.
Broadcom also plans to move its headquarters from San Jose to Palo Alto, Tan announced at an all-hands meeting on Tuesday.
HockTan has previously said he wants to make the most of the 1.6 million-square-foot campus VMware owns at 3401 Hillview Ave. -- which includes enforcing Broadcom's strict in-office policies for all employees, including those who previously benefited from VMware's work-from-home flexibility.
According to a recording verified by Silicon Valley Business Journal, Tan emphasized: "Remote work does not exist at Broadcom." Employees who live within 60 miles of a Broadcom location must work from the office, with limited exceptions. "If you're customer-facing, market (sales)-facing, then of course you can work remotely, I don't care. Any other exceptions, you'd better learn how to walk on water. I'm serious," Tan said.
Broadcom's current 109,000-square-foot corporate headquarters at 1320 Ridder Park Drive in San Jose will likely be replaced by the move to Palo Alto, where the semiconductor giant also has three buildings in North San Jose.