Broadcom headquarters
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Broadcom has reportedly laid off staff in a new round of job cuts at the chip giant.

Business Insider reported that the firm cut roles across sales and accounts last week, according to LinkedIn posts seen by the publication. Broadcom has yet to comment on the news, while the exact number of roles affected has not been confirmed.

The downsizing follows layoffs at VMware towards the end of 2023. Broadcom’s acquisition of the virtual machine (VM) firm saw thousands of job cuts worldwide, affecting areas of software development and cloud engineering, as well as administration, sales, and marketing positions.

The latest cuts come after Broadcom recently sold what was VMware's headquarters. A deal believed to be worth around $115 million saw the Stanford Research Park site sold to Harvest Properties and TPG Real Estate.

Broadcom's reported cuts follow the reveal of a new partnership with OpenAI, with the pair set to jointly develop custom GPUs. According to the deal, the ChatGPT developer will design its own GPUs with Broadcom’s assistance, while also deploying the chip firm's networking solutions for its racks.

Prior to the partnership, Broadcom reported $15.95 billion in revenue in its most recent earnings statement, reflecting a 22% increase year-over-year, which it described as record results.

Those results saw CEO Hock Tan report that more than 90% of VMware’s 10,000 largest customers had signed up for the vendor’s Cloud Foundation (VCF) platform and accompanying subscription licensing plan. The claim came amid ongoing challenges arising from the VMware integration into Broadcom’s fold.

Earlier this year, it was reported that some perpetual VMware license holders were unable to download software patches through their portals, with some unable to do so for months while awaiting action from Broadcom’s customer support.

Examples such as these of migration issues, coupled with reported price increases, have seen the number of VM alternatives rise in recent months, with vendors and system integrators such as Caylent, OVHcloud, and Platform9 joining the likes of Nutanix in offering exit options for VMware clientele.

Broadcom also faces stiff competition from the cloud giants, with Gartner recently warning that VMware will lose 35% of workloads by 2028, as hyperscalers such as Microsoft and Google Cloud prove an attractive proposition for current customers.

SDxCentral has contacted Broadcom for comment.