EMC cuts jobs after profits drop in Q306
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.”