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, , Editor-in-Chief, Light Reading