EMC insists past Dell reseller deal proves merger's value

EMC talks up merger plans as it announces layoffs

EMC has claimed its past reseller deal with Dell proves that the planned merger is a good idea, as it announces its intention to cut its own workforce.

The storage giant filed two separate documents with the US Securities and Exchange Commission over the new-year period which outlined the layoff plans and talked up the Dell merger, respectively.

In the former - an 8-K filing published on 30 December - EMC said a "reduction in force" was on the cards and would be "substantially completed" by the end of the first quarter of this year.

It did not disclose how many staff would be heading for the exit, but said it is expecting the associated charge to cost $250m (£168.5m). The move forms part of a wider plan it previously announced to reduce its cost base by $850m annually.

In the filing, EMC said the job cuts are "consistent with prior restructuring actions to keep pace with changes in the industry".

A separate document filed over the holidays contains a transcript of a video message posted to the company's intranet from its vice president Steve Crowe.

Crowe said the planned merger is an opportunity for staff to "participate in something historic" as he talked up the acquisition.

He stressed his opinions were "not bullet items from marketing", but, instead, his "personal, authentic" thoughts. "This is truly how I feel in my gut about this proposed merger," he said.

He added that EMC and Dell's complementary products were a key benefit and said customers' demands to work with fewer, more strategic, vendors were also a key consideration.

The duo's similar go-to-market philosophies were also flagged by Crowe, who said that a recent reseller agreement between the pair had proved this.

"Dell is exceedingly well known for their brand in the SMB business space, in their electronic commerce channels," he said. "It is a perfectly co-related and perfectly complementary go-to market. Remember our Dell reseller relationship from about four or five years ago: we took our VMX technology, we lined up with Dell and put it through the Dell distribution channel - both through SMB as well as some of the key verticals they're good with. Within about 24 months, we grew that to a multibillion-dollar resell business.

"We've already proven in the past how complementary our go-to market and our products strengths are."