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EMC to cut jobs after weak outlook

The data storage company did not say how many jobs would be cut, but expects to take as much as a $150 million charge as a result.
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Written by Zack Whittaker, Writer-editor on
(Image: EMC)

EMC warned it will cut jobs later this year as it forecast a lower-than-expected profit for the year.

The data storage company did not specify how many jobs will be affected, but said they would come before the end of 2015.

EMC said Thursday it would swallow a charge of up to $150 million on the restructuring.

The company saw a boost from majority-owned VMware, which reported solid earnings this week. But EMC fell short of analyst expectations as it buckles down for a rocky few fiscal quarters on a strong U.S. dollar and a shift to long-term revenue collection.

The company reported earnings of 69 cents per share, up 15 percent on the same quarter a year earlier, on revenue of $7 billion.

Wall Street was expecting 68 cents per share on revenue of $7.1 billion.

EMC cited a stronger dollar for its muted outlook, saying it expects around $1.98 per share on revenue of $26.1 billion -- far below Wall Street estimates.

Average estimates from analysts pegged the company to hit at least $2.13 per share and $26.2 billion in revenue.

EMC shares were up slightly in pre-market trading Thursday.

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