EMC announces more job cuts
The storage giant is axing another 100 jobs worldwide on top of the 1,250 it announced last year, the company disclosed in a recent regulatory filing with the US SEC.
The cuts are part of EMC’s ongoing efforts to integrate the numerous acquisitions it has made over the past few years and improve efficiencies across the organisation.
In the company’s filing to the US Securities and Exchange Commission (SEC) at the end of last month it said the consolidation plan was designed to deliver a “more unified experience to customers”.
The layoffs were originally outlined in the storage and software firm’s 2006 fiscal third quarter results in October, which saw the firm report record revenues. However profits had dropped over 30% for the quarter, thanks to various accounting charges.
The company’s net income slumped from US$421.7million in Q305 to just US$283.7million in Q306, despite a 19% increase in revenues for the same period from US$2.37 billion to US$2.82 billion — its highest ever quarterly revenues.
When explaining the initial round of job cuts, Joe Tucci, EMC chairman, president and CEO, said it would benefit customers by streamlining the firm’s processes.
EMC estimates it will incur a pre-tax charge of around US$175million for the consolidation, rather than the US$150million previously expected.
The company said the affected employees were expected to depart by the end of this year.