Broadcom Reduces Workforce in Sales and Accounting Following $100B+ OpenAI Partnership Announcement

Broadcom, the chip giant, recently executed layoffs targeting customer-facing roles such as sales, account management, and customer success amidst a strategic shift following its VMware acquisition. These cuts come shortly after the company’s announcement of a significant partnership with OpenAI to develop custom AI accelerators, set to launch in 2026. While the exact number of layoffs remains undisclosed, the focus appears to be on reducing staffing in non-technical areas. This restructuring aligns with Broadcom’s goal to streamline operations while tapping into the booming custom AI chip market, expected to grow substantially by 2026. The collaboration with OpenAI marks Broadcom’s fourth significant deal in the custom chip sector, joining other tech leaders such as Google and Amazon. Analyst projections indicate Broadcom is poised to become a market leader in the chip industry, particularly with increased demand for alternative AI processors amidst competitive pressures from Nvidia.

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