‘Why don’t we stay the course?’ VMware supports employee concerns
VMware says it’s continuing to hire and has no plans to change its recruiting efforts in the future, even though the company tells employees it can’t guarantee they’ll get still a job after the $61 billion merger with Broadcom is complete.
There is one caveat: check with the legal department before hiring a new vice president.
“While we cannot speak for Broadcom, our hiring plans, which are based on our operating plans and workforce needs, are continuing,” Broadcom said in a lengthy document. frequently asked questions (FAQs) he filed with the U.S. Securities and Exchange Commission last week. “Consistent with current practice, our hiring plans continue to be driven by our operating plans and workforce needs in partnership with our finance and talent acquisition teams. However, before beginning a hiring process for anyone who will have a title of Vice President or above, please consult with the Legal Department.
Broadcom CEO Hock Tan has spoken publicly about the need to adjust the company’s revenue model and released slides that show Broadcom wants to increase the software maker’s profitability. Jeff Ready, CEO of VMware competitor Scale Computer, said the only way to achieve the profitability Tan projected was to lay off.
However, the internal FAQ that VMware filed as part of its SEC disclosure requirements shows that the company normally proceeds with hiring, travel and spending under the operating plan it had prior to the release. announcement of the agreement.
In addition to questions about hirings and layoffs, VMware told employees why it abandoned plans to go it alone, saying it received an offer from Broadcom in May that enriches shareholders at a price the board of directors VMware administration could not ignore.
“We have received an unsolicited proposal to purchase the company at a substantial premium,” the company wrote. “VMware’s board of directors has evaluated the proposal and determined that it would be in the best interests of shareholders to accept the offer, including a “go-shop” provision under which VMware and its board of Directors may actively solicit, receive, evaluate and potentially enter into negotiations with parties proposing alternative proposals for a period of 40 days following the date of signing of the definitive agreement.
Here are a dozen asked and answered questions that VMware has provided managers to answer employee questions: