EMC cuts jobs after profits drop in Q306

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By  Published  October 20, 2006

EMC is to axe 1,250 jobs worldwide by the end of 2007 following disappointing third quarter fiscal results that saw profits drop over 30% from US$421.7m- illion to US$283.7 million.

The cuts equate to around 4% of the vendor’s global workforce, which currently stands at around 31,000, and EMC expects the consolidation to cost it between US$150million and US$175million in its fourth fiscal quarter of 2006.

EMC said the consolidation is designed to deliver a more unified experience to customers through further integration of the 21 acquisitions made over the past three years, which includes the purchase of data security vendor RSA Security for US$2.1 billion in June.

“These actions, while difficult, are necessary,” Joe Tucci, EMC chairman, president and CEO, said in a statement.

“Customers are asking us to approach them more as a single, integrated partner, and to streamline some of our processes in order to bring innovation to them even faster, more simply and more cost-effectively than we do today.”

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