California-based tech giant Broadcom is closing an office in Downtown Crossing and axing 150 jobs there as part of a much broader cost-cutting effort following the completion of its VMware acquisition.
Broadcom informed the Massachusetts Executive Office of Labor and Workforce Development on Nov. 27 that it will close its entire VMware office at 2 Avenue de Lafayette (the Lafayette City Center). The first wave of layoffs will start on Jan. 26. Tech trade publication Channel Futures reported that nearly 3,000 job cuts at Broadcom have been disclosed among several states so far as part of the VMware integration, and many more are expected.
Executives at Broadcom didn’t waste any time: The company, which specializes in hardware and software for the computing and telecom sectors, only just completed its acquisition of VMware on Nov. 22, following regulatory approval of the deal in China.
Broadcom initially struck the deal to buy VMware in May 2022 for $61 billion, along with taking on about $8 billion in debt. At the time, Broadcom said it would combine VMware with its existing software group, and keep the VMware name for that group.
VMware specializes in virtualization software, which essentially uses software for functions that would normally need additional hardware to perform, to significantly increase server efficiency.
VMware has long been based in Silicon Valley, but it has ties to the Massachusetts tech world in large part through EMC, which acquired VMware in 2004 for $625 million, and then through Dell Technologies, which bought EMC in 2016.
In 2021, Dell spun off VMware as a separate publicly traded company. However, Michael Dell and private equity firm Silver Lake Partners, a major financial backer of Dell’s namesake computer company, maintained large stakes in VMware while Dell continued to chair VMware’s board through the sale to Broadcom.