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Broadcom Preps For Massive CA Technologies Layoffs: Report

Broadcom is laying off about 40 percent of the U.S.-based employees of CA Technologies right after the company closed its $18.9-billion deal to acquire CA, according to reports.

Broadcom appears to be planning a massive layoff of employees from its newly-acquired CA Technologies business.

Newsday on Thursday reported that Broadcom is planning to lay off almost 2,000 of its 4,800-plus U.S.-based employees of the former CA.

Broadcom, in an emailed response to CRN about the reported layoffs, wrote that employees are critical to the company's success and that it carefully considers how best to integrate workforces.

[Related: Broadcom To Buy CA Technologies In $18.9B Deal]

"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 said.

Broadcom declined to discuss specific numbers of impacted employees. San Jose, Calif.-based chipmaker Broadcom in July unveiled an $18.9-billion deal to acquire New York-based CA in a move to create an industry-leading infrastructure company.

The acquisition of CA closed earlier this week. Immediately on closing, investment company Thoma Bravo unveiled a deal to purchase Veracode from Broadcom for $950 million in cash, which was 55 percent more than CA paid for the company early last year.

Broadcom in March was shut out of a planned $121-billion acquisition of San Diego-based Qualcomm due to national security concerns.

According to internal documents that Newsday obtained, Broadcom will lay off almost 2,000 of its 4,837 U.S.-based CA employees. Emails were sent to all CA employees in the U.S. stating that 40.9 percent of them would be laid off with severance packages, while the remaining employees will be retained.

At least one employee was told that her last day in the office is Nov. 9, but would not be officially terminated until Feb. 8 of next year, Newsday reported.

Broadcom is no stranger to making big layoffs after acquiring other companies. Broadcom in June laid off about 1,100 employees after its 2017 merger with Brocade, according to Reuters.

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