Broadcom cuts 250 jobs days after landing OpenAI chip deal

Broadcom is cutting nearly 250 jobs at its Palo Alto offices just days after announcing a major partnership with OpenAI to develop custom AI chips. The layoffs, affecting sales and customer success roles, highlight the ongoing workforce reductions following Broadcom’s 2023 VMware acquisition, even as the company secures lucrative AI infrastructure deals.

What you should know: The $1.65 trillion semiconductor giant filed notice with California’s Employment Development Department to permanently lay off 247 employees at its Hillview Avenue offices, effective December 19.

• The cuts primarily impact staff in sales, customer success, and account management roles, according to social media posts and people familiar with the matter.
• This represents the latest round of workforce reductions that began after Broadcom’s 2023 acquisition of VMware, a cloud computing software company whose headcount was reportedly cut by half earlier this year.

The timing: The job losses arrived the same week Broadcom announced its high-profile collaboration with OpenAI to design custom AI accelerators.

• Beginning next year, the companies plan to deploy chips consuming up to 10 gigawatts of electricity — roughly enough to power millions of homes.
• The partnership positions Broadcom as a key hardware supplier for OpenAI’s expanding AI infrastructure needs.

What they’re saying: OpenAI CEO Sam Altman emphasized the strategic importance of the chip collaboration.

• “Developing our own accelerators adds to the broader ecosystem of partners all building the capacity required to push the frontier of A.I.,” Altman said in a statement.

Why this matters: The simultaneous job cuts and AI partnership announcement illustrate how tech companies are reshaping their workforces while pursuing lucrative opportunities in artificial intelligence infrastructure, prioritizing high-growth sectors even amid broader cost-cutting measures.