EMC cuts 1,000 jobs worldwide

EMC is axing up to 1,000 jobs worldwide as it seeks to trim its growing wage bill following last year’s acquisition spree.

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By  Diana Milne Published  January 15, 2006

EMC is axing up to 1,000 jobs worldwide as it seeks to trim its growing wage bill following last year’s acquisition spree. The company — which acquired three major software companies in 2005 and reported revenue of between US$2.70 billion and US$2.17billion in Q4 2005 — will slash 4% of its workforce in what it calls a “rebalancing” exercise. “While we continue to focus on improving our overall cost efficiencies, we also plan to utilise this rebalancing to invest in sales and R&D in order to acce-lerate our innovation engine to capture an even greater share of our expanding market opportunity,” said Joe Tucci, EMC’s president, CEO and chairman. The readjustments to the EMC workforce are expected to be complete by the end of 2006 and will cost the company US$80million in “employee separation benefits”. Mohammed Amin, general manager of EMC Middle East and North Africa (MENA) told IT Weekly that there would no job cuts in the Middle East, with the firm planning to add staff in the region this year. “In the Middle East we are lucky. We are growing at a rate of more than 80% a year and we need every person we have. So we are hiring more people,” he went on to say. Amin said most of the positions that would be affected by the redundancies would be in back office and logistics departments — and speculated that the majority of cuts would take place in EMC’s US offices. He said the cuts will take place because of the acquisitions made by EMC. ”In 2005 we acquired three major software companies and in the past two years we have acquired more than 18 companies,” he said. “It’s very normal that when you integrate all these companies into EMC that some positions become redundant,” he added. EMC acquired Captiva Software, SMARTS and Rainfinity last year. Amin said he did not believe the acquisitions will slow down in 2005 and says the company would strengthen its efforts to develop new products using the technology it has acquired. “Knowing EMC I don’t believe we will slow down the acquisitions — especially in software,” he claimed.

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