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The $69 billion acquisition deal between American semiconductor giant Broadcom and VMware has officially been completed on November 23rd. Recently, there have been reports that VMware’s Beijing branch is undergoing trademark changes and personnel adjustments. In a letter dated November 22nd, VMware CEO Raghu Raghuram expressed that the “arduous journey” to secure approval for the transaction was filled with uncertainty and pressure, especially in the final weeks leading up to the confirmation of the acquisition. Now that the acquisition has been approved, Broadcom plans to communicate with employees starting from November 27th.
At present, Broadcom has renovated offices in multiple regions. The VMware office located in Zhongguancun, Beijing has already replaced its signage with that of Broadcom. However, over 1,000 Chinese employees are still waiting for more information regarding their future at the company, and some will face job changes.
Broadcom did not immediately respond to the request for comment on November 27th. According to previous financial reports, approximately 35% of Broadcom’s revenue in fiscal years 2021 and 2022 comes from China.
An employee from VMware China revealed that the company’s private cloud business is facing fierce competition from local enterprises, all of which are seeking to replace foreign products with domestic ones.
In March 2023, VMware warned investors that different legal regulations in China and the United States could lead to legal conflicts. The company stated that Chinese laws and regulations regarding data storage and processing may impact its business.
According to an anonymous VMware employee, Broadcom will provide two options for existing employees: a new contract or severance pay.
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