Global data storage major EMC plans layoffs ahead of its acquisition by Dell. The data storage company plans to cut annual costs by $850 million. The restructuring plan was approved last week, according to a regulatory filing.For latest news on Business & Budget 2017, like us on Facebook and follow us on Twitter.
EMC also sells IT services to businesses and owns an 80 per cent stake in cloud-computing company VMware Inc.
EMC, in the regulatory filing, said the planned job cuts would be "substantially completed by the end of the first quarter of 2016 and fully completed by the end of 2016". The data storage company also said that it will take a charge of $250 million and make cash payments of $220 million as part of the cost-cutting plan.
"The plan consists of a reduction in force which will be substantially completed by the end of the first quarter of 2016 and fully completed by the end of 2016. The total charge resulting from this plan is expected to be approximately $250 million, with total cash payments associated with the plan expected to be $220 million," the filing noted.
In October last year, PC maker Dell, which is trying to increase its presence in the fast-growing market for managing and storing corporate data, agreed to pay $65.97 billion for EMC.
Dell, which is diversifying beyond its core personal computer business, has been expanding its software and service businesses. Dell was taken private in 2013 by founder and CEO Michael Dell.
EMC, which makes data storage hardware and sells cloud storage and security products, had reported revenues of $24.4 billion in 2014 and employs about 70,000 people worldwide.
(With agency inputs)