Leaked email lays out options for VMware workers post Broadcom deal

VMware employees received an email this week laying out what their fates could be when Broadcom closes its $61 billion acquisition of the cloud computing and virtualization company.

VMware CEO Raghu Raghuram and chief people officer Betsy Sutter held a meeting this week with senior directors where they shared updates about the upcoming acquisition that's expected to close on October 30, according to an email sent to senior managers that was viewed by Insider.

Sutter had cautioned that employees should "expect a feeling of acceleration" as the close date approaches and that Broadcom is "driving the playbook," the email said.

According to the email, VMware employees will have one of three options for their employment status: receive a Broadcom offer, a transitional role offer, or a severance package.

Employees, including managers, are not likely to have a choice in which option they get, and managers are unlikely to know about their or their teams's status ahead of time, the email said.

VMware is aiming to notify employees of their status by mid to late October, but it could be later or after the acquisition closes, the email said.

VMware and Broadcom did not immediately respond to requests for comment.

Previously, Insider reported that Broadcom is planning drastic cuts for VMware. Employees had feared layoffs and a culture clash on remote work, and some employees speculated that some units like security may be spun off or sold. Many employees and executives also left VMware after the deal was announced.

Below is what the email says about employees' options:

There will be three possible options for current VMware employees:

1) Receive a Broadcom offer

2) Receive a transitional role offer – this can vary based on role, but will involve a set amount of additional months to be retained before their severance package starts. These will be few in number

3) Receive a severance package based on VMware's severance plan.

Please note that most employees are unlikely to have the ability to choose which of these three options they will be presented with.

The target for notifying employees of their status is mid-late October, but it could be later or even after close. As well, some countries outside of the US have guidelines which may affect the notification date. This means individuals in different countries may receive their notifications at different times.

Managers will be treated the same as other employees and are generally unlikely to know the status of themselves or their team members in advance.

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