By Staff writer
Storage giant EMC is planning to shed 1,250 jobs by the end of 2007 as part of a move to facilitate “further integration” between the company and most of 21 acquisitions it has made the past three years.
While the reductions will only make a small dent in EMC’s 31,000-strong global workforce, the vendor is set record a pre-tax charge of between US$150m and US$175m to cover the cost its actions.
That hit will be taken in the fourth quarter.
EMC chief Joe Tucci said the actions “while difficult, are necessary” and added: “The time is right to accelerate the integration EMC and most of the companies we have acquired over the past three years, create more efficient, centralised corporate functions, reduce management layers, take greater advantage of opportunities to improve our overall cost structure.”
The decision to slash jobs came despite EMC revealing banked a US$284m profit during the third quarter.