Broadcom preps for massive CA Technologies sackings: report

By on
Broadcom preps for massive CA Technologies sackings: report

Broadcom appears to be planning a massive layoff of employees from its newly-acquired CA Technologies business.

Newsday on Thursday reported that Broadcom is planning to lay off almost 2000 of its 4800-plus US-based employees of the former CA.

Broadcom, in an emailed response to CRN USA about the reported layoffs, wrote that employees are critical to the company's success and that it carefully considers how best to integrate workforces.

"As with any acquisition, we seek to align skills and resources to most effectively pursue today’s market opportunities. This inevitably requires reductions in select areas of the company. These are difficult but necessary decisions, and we work with impacted employees to help ensure they have appropriate services and support," Broadcom said.

Broadcom declined to discuss specific numbers of impacted employees. Chipmaker Broadcom in July unveiled a US$18.9-billion deal to acquire CA in a move to create an industry-leading infrastructure company.

The acquisition of CA closed last week. Immediately on closing, investment company Thoma Bravo unveiled a deal to purchase Veracode from Broadcom for US$950 million in cash, which was 55 percent more than CA paid for the company early last year.

Broadcom in March was shut out of a planned US$121-billion acquisition of Qualcomm due to national security concerns.

According to internal documents that Newsday obtained, Broadcom will lay off almost 2000 of its 4837 US-based CA employees. Emails were sent to all CA employees in the U.S. stating that 40.9 percent of them would be laid off with severance packages, while the remaining employees will be retained.

At least one employee was told that her last day in the office was 9 November, but would not be officially terminated until 8 February of next year, Newsday reported.

Broadcom is no stranger to making big layoffs after acquiring other companies. Broadcom in June laid off about 1100 employees after its 2017 merger with Brocade, according to Reuters.

This article originally appeared at crn.com

Got a news tip for our journalists? Share it with us anonymously here.
Copyright © 2018 The Channel Company, LLC. All rights reserved.
Tags:

Most Read Articles

You must be a registered member of CRN to post a comment.
| Register

Poll

The most over-hyped technology trend of 2019 is...
Blockchain
AI
IoT
Everything-as-a-service
View poll archive

Log In

Username / Email:
Password:
  |  Forgot your password?