A quarterly filing by EMC has revealed the storage giant is engaged in programmes to cut 1,800 jobs across its various businesses.
The 10-Q form, recently filed with the US Securities and Exchange Commission, outlines that programmes implemented at EMC during 2013's opening quarter will ultimately result in the loss of 1,004 jobs. Additionally EMC-owned VMware is set to reduce headcount by about 800.
The EMC redundancies, in the vendor's Informaton Storage, Information Intelligence and RSA Information Security divisions, are forecast to cost the company about $80m (£52m), while the VMware cuts will hit the vendor's pocket to the tune of $60m to $65m. The virtualisation heavyweight is also looking at costs of up to $25m related to its departing certain non-core markets. All restructuring work is expected to be done within a year.
"In the first quarter of 2013, EMC implemented restructuring programmes to create further operational efficiencies which will result in a workforce reduction of 1,004 positions," said the filing. "VMware implemented a plan to streamline its operations in order to focus its business on strategic areas it has determined to be most compelling.
"Additionally, VMware exited and is planning to exit certain lines of business and consolidate facilities."
During Q1 2013 EMC's total sales grew 5.75 per cent year on year to almost $5.4bn, but operating profit fell more than 10 per cent to £760.6m. This week the storage titan is holding its Global Partner Summit in Las Vegas, during which CEO Joe Tucci has pledged to further increase the firm's channel centricity. Stay tuned to CRN for all developments from the event.
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