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Broadcom Layoffs: 2,000 CA Technologies U.S. Employees Cut

Broadcom has laid off roughly 300 CA Technologies employees two days after completing an $18.9 billion buyout of the software company, according to Newsday on November 7.

Updated November 8, 10:25 p.m. ET: Broadcom plans to lay off nearly 2,000 of the 4,837 U.S. workers it inherited when it acquired CA Technologies, according to internal documents obtained by Newsday. International layoff figures were not mentioned.

CA Technologies workers in Islandia (Long Island) and Manhattan were notified of layoffs Wednesday by Broadcom, the report said. CA employees interviewed by the paper expressed shock about the job cuts, but the layoffs aren’t all that surprising for those who are familiar with Broadcom’s business.

Broadcom CEO Hock Tan is known as an aggressive cost cutter. CA’s mainframe software business is seen as a long-term cash generator for Broadcom, but the new CA parent hasn’t said much about how it plans to leverage CA’s various products for IT service providers.

CA now operates as a Broadcom subsidiary. CA veterans Greg Lotko and Ashok Reddy earlier this week shifted to Broadcom as SVP & General Manager of the Mainframe Division and SVP & General Manager of the Enterprise Software Division, respectfully.

CA Technologies: MSP Partnerships

CA has close relationships with several hundred midmarket and enterprise service providers. CA has developed so-called whitespace assessments to help those MSPs pinpoint next-generation recurring revenue opportunities with customers. Among the key focus areas: Docker and container monitoringapplication performance monitoring, and SaaS-oriented services.

Still, some of the marketing messages will likely evolve — especially those involving MSPs assisting businesses with DevOps. The reason: Broadcom has already sold off CA’s Veracode’s SaaS platform — which allows DevOps teams to test software for security holes.

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4 Comments

Comments

    Richard:

    THE LAYOFFS ARE CLOSE TO 6000. NOT SURE WHERE YOU HEARD 300!!!

    Joe Panettieri:

    Hi Richard: The original figure of 300 involved positions in/around New York Metro. U.S. layoff figure is now confirmed at around 2,000. If/when ChannelE2E gets a confirmed global layoff figure we’ll publish it, along with context about what it means in particular for CA’s service provider software platforms.
    -jp

    Matt:

    Broadcom will sell CA piece by piece within 6 months.

    Joe Panettieri:

    Matt: We’ll be watching the CA Technologies MSP product line very closely, with a particular eye toward CA Unified Information Management (UIM). We haven’t heard any spin-off rumors in that area, but we’ll be pushing for updates on the UIM front from the company.
    -jp

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