EMC to cut 1000 jobs despite Q3 profit rise

Storage

by CBR Staff Writer| 30 January 2014

Job cut plan will be completed by the end of the first quarter of 2014.

Storage technology major EMC is planning to cut over 1000 jobs as part of its restructuring plan.

According to a regulatory filing the job cut plan will be completed by the end of the first quarter of 2014 and fully completed by the end of 2014.

EMC said that the company will incur charges of approximately $100m - $120m while cash payments associated with the plan expected to be in the range of $95m to $114m.

The Massachusetts-based company also added that it ended 2013 with a net increase of 2,000 jobs as a result of the shifts in its business.

The technology provider also announced plan to hire employees during the year in order to capitalise from new opportunities in the IT business.

EMC also expects to end the year with the similar number of employees it had at start of the year, or even more.

At the start of 2014, EMC had employed 60,000 workers that included over 9,000 employees in Massachusetts, according to an EMC spokesperson.

During the third-quarter the company reported a consolidated revenue of $5.5bn, an increase of 5% compared with the corresponding period a year-ago quarter.

EMC has reported a profit of $1.02bn during the quarter compared to $870m it reported a year ago.

EMC president and chief operating officer David Goulden said while company's financial results for the third quarter were impacted by a decline in US federal spending and a backend-loaded quarter, it achieved almost all its strategic and operational goals.

"We were pleased to see storage demand accelerate in the third quarter excluding US federal, and we think this is an encouraging sign for the storage market overall. Going forward, we remain confident EMC will continue to grow and gain market share,"Goulden said.

EMC chairman and chief executive officer Joe Tucci said EMC federation across EMC Information Infrastructure, VMware and Pivotal continues to be well positioned in target markets and very well received by customers and partners.

"We leveraged the unique power of our business model in the quarter to expand our technology portfolio, strengthen our partner ecosystem and extend our leadership in cloud computing, Big Data and trusted IT," Tucci said.

"Despite our disappointment with our quarterly results, our confidence in the success of our strategy over the long term has never been stronger."

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