Even High-Riding EMC Facing Layoffs

 
 
By Chris Preimesberger  |  Posted 2009-01-07 Email Print this article Print
 
 
 
 
 
 
 

EMC, the world's largest seller of enterprise data storage hardware and software, says it will trim about 2,400 jobs or about 6 percent of its staff over the next 12 to 15 months.

EMC, the world's largest seller of enterprise data storage hardware and software, said Jan. 7 that it will trim about 2,400 jobs-or about 6 percent of its staff over the next 12 to 15 months-in light of the global recession.

In filing its preliminary quarterly financial report to the SEC, EMC also reported quarterly profit that was "in line with its most-recent [fourth-quarter] forecast," company spokesperson Dave Farmer told eWEEK.

In its fourth-quarter report to be made public on Jan. 27, EMC will report profit of 23 to 24 cents a share, Farmer said. That is in line with the 23-cent average forecast of analysts polled by Reuters Estimates.

Overall, EMC will report $4 billion in revenue for the fourth quarter on Jan. 27.

The company will also take a charge of 10 cents per share related to the restructuring, Farmer said.

"Our goal is to position EMC for continued success throughout the downturn and for even greater success during the next economic growth cycle," President and CEO Joe Tucci said in a statement to the press.

The cost cuts are designed to reduce spending by about $350 million in 2009, the company said. Savings from the layoffs are expected to increase to about $500 million in 2010.

"I was not surprised at either the revenue or the layoffs," despite EMC's profitability, storage analyst Brian Babineau of Enterprise Strategy Group told eWEEK. "EMC continues to execute at very high levels, but at some point, the economy catches up with everyone. They are simply being more proactive in aligning costs with what 2009 is expected to bring."

EMC shares rose to $12 in after-market trading, from their New York Stock Exchange close of $11.18.


 
 
 
 
Chris Preimesberger Chris Preimesberger was named Editor-in-Chief of Features & Analysis at eWEEK in November 2011. Previously he served eWEEK as Senior Writer, covering a range of IT sectors that include data center systems, cloud computing, storage, virtualization, green IT, e-discovery and IT governance. His blog, Storage Station, is considered a go-to information source. Chris won a national Folio Award for magazine writing in November 2011 for a cover story on Salesforce.com and CEO-founder Marc Benioff, and he has served as a judge for the SIIA Codie Awards since 2005. In previous IT journalism, Chris was a founding editor of both IT Manager's Journal and DevX.com and was managing editor of Software Development magazine. His diverse resume also includes: sportswriter for the Los Angeles Daily News, covering NCAA and NBA basketball, television critic for the Palo Alto Times Tribune, and Sports Information Director at Stanford University. He has served as a correspondent for The Associated Press, covering Stanford and NCAA tournament basketball, since 1983. He has covered a number of major events, including the 1984 Democratic National Convention, a Presidential press conference at the White House in 1993, the Emmy Awards (three times), two Rose Bowls, the Fiesta Bowl, several NCAA men's and women's basketball tournaments, a Formula One Grand Prix auto race, a heavyweight boxing championship bout (Ali vs. Spinks, 1978), and the 1985 Super Bowl. A 1975 graduate of Pepperdine University in Malibu, Calif., Chris has won more than a dozen regional and national awards for his work. He and his wife, Rebecca, have four children and reside in Redwood City, Calif.Follow on Twitter: editingwhiz
 
 
 
 
 
 
 

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