Not nearly enough
Broadcom to Cut Almost 1,300 VMware Jobs in California After Takeover
11–20 of 133 posts
Re: Broadcom to Cut Almost 1,300 VMware Jobs in California After Takeover
#12Re: Broadcom to Cut Almost 1,300 VMware Jobs in California After Takeover
#13Next year: Tripplex, a new startup from ex-VMware employees that promises 2X the performance of any other virtualization platform and doesn't charge for "extra" features!
the zoom phenomenon.
Re: Broadcom to Cut Almost 1,300 VMware Jobs in California After Takeover
#14Could someone who understands the situation better explain .. what are the business synergies between Broadcom and VMware? Is there any business overlap at all..?
Maybe buying and laying off is a profitable move, but I'd expect it to be done by investment firms that specialize in that. It'd be a bizarre financial gamble for a chip company. So there must be some angle where this makes sense for them and not for anyone else
Re: Broadcom to Cut Almost 1,300 VMware Jobs in California After Takeover
#15Instead of leveraged buyouts, we now have layoff buyouts. Acquire firm, minimise headcount, keep lagged revenue on existing assets and IP for 5 years while reaping profits on 90% margins.
> 90% margins
source/citation required?
Re: Broadcom to Cut Almost 1,300 VMware Jobs in California After Takeover
#16Instead of leveraged buyouts, we now have layoff buyouts. Acquire firm, minimise headcount, keep lagged revenue on existing assets and IP for 5 years while reaping profits on 90% margins.
Isn't that what private equity firms been doing forever?
Re: Broadcom to Cut Almost 1,300 VMware Jobs in California After Takeover
#17Could someone who understands the situation better explain .. what are the business synergies between Broadcom and VMware? Is there any business overlap at all..? Maybe buying and laying off is a profitable move, but I'd expect it to be done by investment firms that specialize in that. It'd be a bizarre financial gamble for a chip company. So there must be some angle where this makes sense for them and not for anyone…
Broadcom/Avago is more of a corporate raiding company than anything else at this point. They took the name of one of their victims to hide it a bit.
Re: Broadcom to Cut Almost 1,300 VMware Jobs in California After Takeover
#18Instead of leveraged buyouts, we now have layoff buyouts. Acquire firm, minimise headcount, keep lagged revenue on existing assets and IP for 5 years while reaping profits on 90% margins.
Well, very simplistically, yes it is correct and should be expected to reduce headcount post-acquisition, that is the GCSE ('grade school') business studies answer: there are core functions which are non-linear in business growth if you like; that have an 'absolute' requirement but without a marginal need to grow as fast as the rest of the company. Thus an acquired company that is well-integrated doesn't need its pay…
If there are overlaps, headcount reductions of those overlap make sense. Furthermore the takeover company must have extremely efficient existing staff with maybe 20-40% spare capacity to take over. I have seen multiple takeovers with overworked of inefficient existing staff before takeover. The takeovers destroyed that acquired business within 3-5 years simply because they dont have the people to run it after firing the previous efficient and well-trained staff. In fact their own existing staff quit because felt underpaid with the extra tasks due to let go staff. Double whammy. Overlapped staff like managers and sub-c suites still retained....which could easily cost about 20-30% of the salaries of those retrenched workers. They are also the absolutely most incompetent one that drove the business to failure. After 25years seeing how mergers ended up I come to the conclusions: #1 MBA schools are absolutely wrong about the benefits of mergers (always dont trust MBAs, if they are that good, they run their own business), #2 there is no such thing as companies synergism from mergers (but MBA called it "if realized" which simply doesnt exist in reality but might hinted on paper), and #3 the person approving mergers never have any management education and a lot not even having MBAs but fully trust some MBAs wearing nice suit especially giving off London English or behave like Steve Jobs demeanor.
Re: Broadcom to Cut Almost 1,300 VMware Jobs in California After Takeover
#19Could someone who understands the situation better explain .. what are the business synergies between Broadcom and VMware? Is there any business overlap at all..? Maybe buying and laying off is a profitable move, but I'd expect it to be done by investment firms that specialize in that. It'd be a bizarre financial gamble for a chip company. So there must be some angle where this makes sense for them and not for anyone…
It’s not that different from software focused private equity shops like Thoma Bravo. Buy a software company, starve it of resources, and price just below each clients BATNA. Revenue may decline over time, but costs fall faster and the buyer harvests that premium. There’s no synergies, just a willingness to be more ruthless and give fewer shits.
Edit: clarity
Re: Broadcom to Cut Almost 1,300 VMware Jobs in California After Takeover
#20Could someone who understands the situation better explain .. what are the business synergies between Broadcom and VMware? Is there any business overlap at all..? Maybe buying and laying off is a profitable move, but I'd expect it to be done by investment firms that specialize in that. It'd be a bizarre financial gamble for a chip company. So there must be some angle where this makes sense for them and not for anyone…
They’ve run out of chip companies to buy, so they have to figure out how to buy software companies. This is a little bit speculative but I believe they’re substantially interested in VMware’s capability to buy and integrate other software companies.