Everything we know about what’s going on at VMware as employees leave in droves ahead of the $61 billion Broadcom acquisition

• Broadcom bet $61 billion on VMware to expand its business in the cloud.
• But customers and employees alike say the deal is squandering VMware's success.
• Insider took a deep dive into the frustrations bubbling up in the VMware ecosystem amid the buyout.

In May, the chip giant Broadcom announced it would acquire the software firm VMware for a whopping $61 billion. While the deal has yet to close, it's already causing chaos for some employees and insiders in the VMware ecosystem.

The buyout could help Broadcom's push into the software industry and VMware's effort to grow its size. Yet the talent at VMware has started to leave the company because of uncertainty around the deal's influence and hints from Broadcom's CEO about ending remote work. Customers are also picking up on the tension as deals fall through, with some smaller customers worried they'll get left behind.

Here's everything we know about the acquisition so far, based on Insider's conversations with partners, customers, and insiders at the companies. 

Analysts were skeptical of the Broadcom acquisition from the start

From the get-go, Broadcom's plan to buy VMware seemed far-fetched. The companies have little overlap, and with its massive price tag, the acquisition would rank among the highest ever in tech.

This leaves a lot on the line for both firms, with analysts calling it a "major change of strategy." And as the companies seek to combine their efforts, they risk losing top employees as certain administration roles become duplicative in the information-technology, finance, legal, human-resources, and facilities departments.

Read more:

• Broadcom's $61 billion VMware deal is an unusual and pricey way for the chip giant to take on Amazon and Microsoft
• Industry insiders say the biggest risk of Broadcom's $61 billion acquisition of VMware is a 'brain drain' from a talent exodus

Customers and employees tell Insider the worst is yet to come

Work at VMware quickly lost meaning for employees under the threat of Broadcom's impending acquisition. On top of layoff worries, workers fear they'll lose remote-work benefits and the company's focus on inclusion.

Meanwhile, VMware customers are starting to feel the ripple effects. Customers told Insider they feared innovation would be stifled under the chip giant and that top talent would leave the firms.

Read more:

• VMware employees say their work is 'semimeaningless' right now with the threat that new owner Broadcom is likely to cut jobs and product lines
• VMware customers are skeptical of its $61 billion acquisition, calling Broadcom a 'retirement home' and worrying it will stifle innovation, lay off employees, and risk customer relationships

Workers are fleeing VMware to avoid changes from Broadcom

Customer and employee fears have started to come true. VMware deals started to slow as workers began seeking refuge at different companies.

Adding tension to the mix, Broadcom CEO Hock Tan hinted at an all-hands meeting that VMware policies like remote work would come to an end.

Read more:

• VMware is slowing down and vetoing customer deals as the Broadcom acquisition looms, frustrating salespeople and angering clients

• Broadcom's CEO tells VMware employees 'real estate isn't cheap' when asked about work-from-home policy

• VMware employees are freaking out about the Broadcom deal and résumés are flying out of the company

Top tech companies begin scouting VMware execs and employees

Recruiters have taken advantage of employee uncertainty at VMware. Since the Broadcom deal was announced, VMware employees have reported "aggressive" recruiter outreach from giants like Amazon Web Services, Google, and IBM. 

And members of top leadership have followed those workers out the door. VMware has experienced turnover this year in departments like marketing, cyber strategy, and engineering. 

Read more:

• 7 power players who left VMware as Broadcom's $61 billion buyout looms and employees leave in droves – and 4 who recently joined

• VMware employees describe 'aggressive' recruiter outreach from AWS, Google, and IBM after Broadcom deal announced
• Leaked VMware memo reveals its global support VP is the latest exit in an employee exodus amid the Broadcom buyout

VMware proceeds with business as usual during its annual conference

Despite the changes, VMware moved ahead with its flagship annual customer conference. Attendees showed up with the looming deal top of mind, hoping to get some answers. Broadcom wasn't on the schedule, and there were no signs of VMware's buyer at the event until Tan made a surprise appearance from the crowd during the day-two keynote.

Some VMware partners did, however, leave the conference feeling more optimistic about the deal. They told Insider about their plans to use the buyout to get closer to VMware customers. 

Read more:

• Broadcom CEO makes surprise appearance at VMware's big conference amid customer and employee concerns about the $61 billion takeover deal
• Some VMware partners say they're optimistic about the $61 billion Broadcom buyout and see it as an opportunity to cozy up to customers who fear they'll get lost in the deal's fallout