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Cloud Strategies

EMC Cuts Jobs Ahead of Dell Takeover

EMC has initiated a job cuts program that will result in charges of about $250 million as part of a package of cost-cutting measures ahead of its $67 billion acquisition by Dell.

An unspecified number of EMC Corp. (NYSE: EMC) staff will lose their jobs, mostly during the first quarter of 2016. In an SEC filing dated December 30, EMC stated that the restructuring process will be "substantially completed by the end of the first quarter of 2016 and fully completed by the end of 2016," and cost $250 million (of which $220 million will comprise cash payments to axed staff).

EMC is aiming to cut its annual costs by $850 million as it prepares to be swallowed by Dell Technologies (Nasdaq: DELL), which is also trying to cut costs and raise cash to help it finance the largest ever tech M&A deal. (See Dell Buys EMC for $67B in Biggest Tech Deal Ever and Dell Security Unit Files for IPO.)

EMC ended 2014 with 70,000 staff (including 18,000 at VMware) but cut about 1,500 jobs during the first quarter of 2015, the company revealed during its earnings call on April 22.

Further comms industry job cuts are expected soon, as Nokia Corp. (NYSE: NOK) has successfully completed its takeover of Alcatel-Lucent (NYSE: ALU), a move that will trigger an unknown number of job losses. (See Nokia Gains Control of Alcatel-Lucent and Nokia & Alcatel-Lucent: What's Going On?)

— Ray Le Maistre, Circle me on Google+ Follow me on TwitterVisit my LinkedIn profile, Editor-in-Chief, Light Reading

mhhf1ve 1/11/2016 | 6:43:42 PM
Lots of tech jobs being cut... Yahoo is back to trimming its workforce, too. And a bunch of unicorn startups are tightening their belts... Hope the general economy can handle the upcoming interest rate hikes on top of all this.
MikeP688 1/6/2016 | 12:16:17 AM
Re: Uncertainty for EMC staff It is always tragic to see the giants cut down to size.    The question is long-term sustainability and viability though which is yet to be realized.    Google sure has its' gun out for them as they just paid 348 Million to buy Diane Greene's "stealth" start up, Bebop for $ 384 Million....

 

Bebop Technologies
danielcawrey 1/4/2016 | 12:44:49 PM
Re: Uncertainty for EMC staff Mergers almost always result in layoffs, which are never a good thing to help motivate employees. I know that this merger makes sense, and I applaud Dell for doing it. Yet the human cost of these types of deals is never a good thing. 
[email protected] 1/4/2016 | 7:58:07 AM
Uncertainty for EMC staff No numbers have been disclosed so there will be uncertainty in teh ransk at EMC but my back of the envelope calculations suggest that this will affect 2,000-2,500 staff, or 4-5% of EMC staff (not including VMware) -- but that is just my guesstimate.
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