Broadcom has reportedly slashed more than 300 workers at CA Technologies’ facilities in the New York City area. The move comes just days after Broadcom closed on its $18.9 billion acquisition of CA Technologies.
A Newsday report cited dozens of employees who said internal documents hinted at the number of jobs being cut. A Broadcom spokesman confirmed there were layoffs but did not disclose the number of jobs being cut.
“Employees are critical to our success, and any decisions about how to best integrate our workforces are considered very carefully,” a Broadcom spokesperson noted in an email response to SDxCentral. “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 is mostly focused on chips that power networking equipment, while CA Technologies is focused on software that powers networking devices.
A thread on the layoffs has also been posted on TheLayoff.com website.
History of Job Cuts
Prior to the Broadcom acquisition, CA Technologies announced it planned to cut 800 jobs in an attempt to shift its business model. CA Technologies CEO Mike Gregoire said that the job cuts were because the company was undergoing “cross-business unit, cross-functional organization alignment” as it shifts its business to a subscription-based model.
Broadcom’s acquisition of CA Technologies came on the heels of the U.S. government halting Broadcom’s attempt to acquire chip giant Qualcomm. Financial analysts at that time questioned Broadcom’s move on CA Technologies noting that the two firms operated on different ends of the technology spectrum with no synergistic overlap.
Broadcom CEO Hock Tan attempted to soothe investor concerns by noting that the deal would allow Broadcom to sell hardware into new customer segments and that it expects to see a boost in sales tied to 5G network deployments.
“Through CA we believe we have a big doorway to engage strategically with these customers and provide them direct access at very compelling economics to the same leading edge … storage, and compute technologies that are used to enable the cloud service providers today,” Tan said during the company’s third fiscal quarter conference call, according to transcripts.
Broadcom in June cut about 1,100 jobs as part of a cost-cutting move tied to its $5.9 billion acquisition of Brocade that closed late last year. In a quarterly report filed with the U.S. Securities and Exchange Commission, the company said it saved $35 million and $143 million during the first two fiscal 2018 quarters “primarily related to employee termination costs.”