EMC cuts 2,400 jobs
EMC said Wednesday that it will lay off 2,400 workers, or 7 percent of its workforce, as an effort to cut $350 million in costs in 2009 and $500 million in 2010.
The company also added in a statement that its fourth quarter revenue will be $4 billion, up 4 percent from a year ago. EMC also projected earnings of 13 cents a share to 14 cents a share including charges. Without charges, stock based compensation and intangible asset amortization earnings will be 30 cents a share to 31 cents a share.
EMC's outlook is in line with guidance given Oct. 22.
In a statement, EMC chief Joe Tucci said he was pleased with the quarterly performance, but needs to streamline costs. EMC said it plans to:
- Consolidate back office operations;
- Close offices;
- Focus on high-growth investments;
- Realign management and cut contractors;
- And pare back travel and third party services.
EMC said it will take a restructuring charge of $248 million in the fourth quarter to pay for the moves.