January 7th, 2009
EMC cuts 2,400 jobs
EMC said Wednesday that it will lay off 2,400 workers, or 7 percent of its workforce, as an effort to cut $350 million in costs in 2009 and $500 million in 2010.
The company also added in a statement that its fourth quarter revenue will be $4 billion, up 4 percent from a year ago. EMC also projected earnings of 13 cents a share to 14 cents a share including charges. Without charges, stock based compensation and intangible asset amortization earnings will be 30 cents a share to 31 cents a share.
EMC’s outlook is in line with guidance given Oct. 22.
In a statement, EMC chief Joe Tucci said he was pleased with the quarterly performance, but needs to streamline costs. EMC said it plans to:
- Consolidate back office operations;
- Close offices;
- Focus on high-growth investments;
- Realign management and cut contractors;
- And pare back travel and third party services.
EMC said it will take a restructuring charge of $248 million in the fourth quarter to pay for the moves.
Larry Dignan is Editor in Chief of ZDNet and Editorial Director of ZDNet sister site TechRepublic. See his full profile and disclosure of his industry affiliations.
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