CA Issues Layoffs After Acquisition by Broadcom Closes

CA Technologies reportedly has handled pink slips to hundreds of employees two days after Broadcom took ownership of the company.

According to a Newsday report, CA workers in Islandia and Manhattan, New York, were notified of layoffs Wednesday by Broadcom, according to more than a dozen employees. The workers, some facing layoffs, said that “based on documents they received from the company they believed more than 300 workers were losing their jobs,” it said.

Broadcom wouldn’t say how many workers are impacted by the layoffs. Terry Gault, Broadcom’s head of communications, tells Channel Partners that “employees are critical to our success, and any decisions about how to best integrate our workforces are considered very carefully.

“As with any acquisition, we seek to align skills and resources to most effectively pursue today’s market opportunities,” he added. “This inevitably requires us to make reductions in staff 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.”

Terry Gault

Terry Gault

In July, Broadcom announced it was making an $18.9 billion bid for CA in a deal that Channel Partners contributor Michael Finneran, of dBrn Associates, said made little sense.

“Not only are there virtually no complementary features between their product lines, distribution channels, customer bases — the two businesses have nothing to do with one another!” he said. “How can they possibly ‘improve’ one another?”

When announcing the completion of the acquisition, Hock Tan, Broadcom’s president and CEO, said the purchase “strengthens Broadcom’s position as a leading provider of semiconductor and infrastructure software solutions and enables us to better serve our customers.

“We believe this transaction will enable us to offer customers a leading portfolio of best-in-class solutions across a diverse set of technologies,” he said. “We intend to invest in and grow the CA business to further enhance its capabilities in mission-critical infrastructure software solutions.”