A new year brings new workforce cuts for EMC
As the monumental, $67 billion Dell-EMC merger continues into early 2016, EMC recently announced that it will be cutting its workforce by the end of the first quarter. This reduction is part of the recently acquired company's initiative to reduce yearly costs by $850 million by 2017, Jane McCallion wrote at IT Pro.
According to the company's filing at the Securities and Exchange Commission, around $250 million is being set aside for this process. EMC spokeswoman Katryn McGaughey explained that of the $850 million that must be cut, the majority of this will come from "process redesign, digitization and portfolio simplification."
Currently, EMC has not released how many jobs will be cut. Whether the reduction is expansive or small, EMC officials remain adamant that this restructuring was already planned for the company and not because of the recent multi-billion dollar merger with Dell. Dell CEO Michael Dell already hinted that there could be layoffs as a result of the merger, though experts are unsure as to whether or not he was referring to these specific EMC changes or further cuts.
"I don't think EMC will be too heavy-handed with the metaphorical axe before the acquisition is finalized because EMC has to maintain its trajectory. … But if I was a Dell or EMC employee right now I would have a lot of questions about how things are going to shake out," Krista Macomber, an analyst with Technology Business Research, explained to Lauren Ohnesorge at the Triangle Business Journal.
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