Updated: EMC to chop 2400 staff

Vendor hits record Q4 revenue of $US4 billion, representing 4 per cent year-on-year growth

EMC will slash 2400 staff from its global workforce as part of a restructure of its Information Infrastructure business. The storage vendor is the latest in a long line of multinationals culling employees in bid to counteract the economic downturn.

The restructuring program will include back-office and premises consolidation, a rebalance of investments towards higher-growth products and markets, cutbacks to contractor spending. Most significantly, the vendor will also reduce its non-US international headcount by 2400, or 7 per cent. Cuts will mostly come out of management, it stated.

EMC senior communications manager, Asia-Pacific and Japan, Abhrajit Bhattacharjee, said it was not disclosing country-based figures.

“This will see reductions in all areas of EMC’s business and geographies, but this is not a single across-the-board reduction,” he said. “Our goal is to position EMC in Australia for continued success throughout the downturn and for even greater success during the next economic growth cycle.”

The changes will see EMC incur a $US248 million pre-tax hit in the last quarter of 2008 and cost a further $100-$125 million across the next two years. However, the company expects to reduce its operating bills by $US350 million this year, increasing to $US500 million in 2010.

“We managed our costs and investments very carefully throughout 2008,” chairman, president and CEO, Joe Tucci, said in a statement. “However, we believe this additional program will help us strike the right balance between achieving higher levels of efficiency and sustaining strong business agility and performance.”

EMC is just one in the long list of multinational vendors slashing into staff numbers in a bid to gain more cost efficiencies. Earlier this week, Logitech announced it would cut 15 per cent of its global workforce, blaming the weaker retail environment for slower sales and income. Sony is also axing 8000 staff and reduce investments by one-third to counteract the downturn, while Adobe is planning to shed 600 including Australia.

Alongside the restructure, EMC also announced fourth-quarter revenues would hit a record $US4 billion, representing 4 per cent year-on-year growth.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags emc

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.
Nadia Cameron
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?