Feeds

EMC's profit drops, along with the spirits of 1,250 staff

Sales surge

Maximizing your infrastructure through virtualization

Despite strong third quarter storage and software sales, EMC plans to do away with 1,250 staff over the next year.

EMC today disclosed the job cuts as it handed in third quarter results. Revenue surged 19 per cent during the period to $2.82bn. Even when excluding the help of recent acquisitions RSA and Network Intelligence, EMC enjoyed a 17 per cent year-over-year revenue rise to $2.78bn – a company record.

The company, however, wants to clean house after acquiring 21 companies in three years. So, 1,250 staff will have to go by the end of 2007, costing EMC between $150m and $175m. The VMware subsidiary will not be touched by these moves.

Such cuts could improve EMC's bottom line over the long-term. During the third quarter, EMC watched as its profit dipped to $284m from $422m last year.

CEO Joe Tucci marched through about 400 words of marketing fluff in a prepared statement before taking the time to the address the job losses.

"These actions, while difficult, are necessary," Tucci said. "The time is right for us to accelerate the integration of EMC and most of the companies we have acquired over the past three years, create more efficient, centralised corporate functions, reduce management layers, and take greater advantage of opportunities to improve our overall cost structure."

EMC saw hardware revenue rise 19 per cent during the quarter to $1.3bn. Meanwhile, software license and maintenance revenue surged 25 per cent to $1.1bn and services revenue rose seven per cent to $432m.

The VMware subsidiary was a standout once again, growing revenue 86 per cent to $189m.

Investors have watched EMC string together 13 straight quarters of double-digit revenue growth. ®

The Power of One eBook: Top reasons to choose HP BladeSystem

More from The Register

next story
Sysadmin Day 2014: Quick, there's still time to get the beers in
He walked over the broken glass, killed the thugs... and er... reconnected the cables*
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
SHOCK and AWS: The fall of Amazon's deflationary cloud
Just as Jeff Bezos did to books and CDs, Amazon's rivals are now doing to it
BlackBerry: Toss the server, mate... BES is in the CLOUD now
BlackBerry Enterprise Services takes aim at SMEs - but there's a catch
The triumph of VVOL: Everyone's jumping into bed with VMware
'Bandwagon'? Yes, we're on it and so what, say big dogs
Carbon tax repeal won't see data centre operators cut prices
Rackspace says electricity isn't a major cost, Equinix promises 'no levy'
Disaster Recovery upstart joins DR 'as a service' gang
Quorum joins the aaS crowd with DRaaS offering
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.