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Hock Tan is very upfront with his strategy when acquiring these companies - he intends to extract the maximum from the top 500 customers, who are reliant on the product, while abandoning anyone below the 'margin line' he's drawn. As to why it happens - VMWare was incredibly bloated, spending less than 50% of their OPEX on R&D (compare to Broadcom's 80%). They had once created a good product, but the business wasn't working.

"but the business wasn't working"

This. Otherwise why would have Dell sold VMWare to Broadcom in the first place?

they have families? They need a job while they find a new job? I would be surprised if a large part of the workforce could just up and quit and then try an find a new job

>Man I know many people who work for Broadcom but how do they wake up in the morning and go work for this place?

It's not immoral to shed unprofitable customers or tighten who you focus on nor to increase prices.