Semiconductor company Broadcom is planning to lay off approximately 1,267 VMware staff in California after acquiring the latter for $61bn, reported Bloomberg.

In a submission to the California Employment Development Department, Broadcom said the job cuts will start from 26 January 2024.

The affected positions are located at the Palo Alto headquarters of VMware.

Following the job cuts, the headquarter will remain operational.

The move is in line with the chipmaker’s practice of cutting jobs following acquisitions to reduce expenses.

Through a series of acquisitions that have concentrated on software, Broadcom CEO Hock Tan has established one of the largest firms in the semiconductor industry.

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By GlobalData

Tan’s approach is to find businesses with a substantial market share but limited room for expansion.

After buying them, he combines sales, HR, and other support departments in an effort to save expenses while retaining engineering expertise.

Broadcom completed VMware’s acquisition late in November 2023, following approval from China, which was last major hurdle in the way of the multi-billion-dollar merger.

The deal was first announced in May 2022.

Now, Tan’s software efforts are focused on California-headquartered VMware, which employed roughly 38,300 people before the deal closed.

As part of the merger, Broadcom Software Group will be rebranded and operate as VMware, and combine its infrastructure and security software offerings into a broader VMware portfolio.

In addition, Broadcom said that it will invest in VMware Cloud Foundation, the software stack that underpins private and hybrid clouds.

Previously, Broadcom CEO acquired the corporate security units of Symantec and CA Technologies to grow Broadcom’s software division.

Last month, reports emerged that Amazon will let go “several hundred employees” working in its Alexa division.