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RSA loses sales and security jobs in EMC restructuring

Corporate indigestion

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RSA Security is to scrap staff as part of a restructuring plan aimed at boosting efficiency across parent firm EMC.

The redundancies affect security researchers as well as sales and support staff across each of RSA's business units, according to reports. The layoffs are part of an ongoing restructuring process across EMC that may ultimately claim 2,500 jobs.

EMC acquired RSA for $2.1bn in 2006, a price that looked a tad expensive even at the time. The elimination of sales and support roles in acquired businesses is standard operating procedure. The reported redundancies of security researchers is more of a concern.

RSA's core two-factor authentication market is maturing. Although RSA remains a leader in the field with its SecureID tokens, it's under increasing competitive pressures. In response, RSA has diversified into areas such as anti-phishing services and the hot area of data-loss prevention, via its recent acquisition of Tablus.

It seems RSA's efforts to expand into adjacent businesses via acquisition may have led to a spot of indigestion, though EMC is keen to say the restructuring has always been on the cards.

Matt Buckley, head of public relations at RSA, told eWeek that the redundancies are not part of a downsizing strategy nor indicative of the overall health of its business. He added that attempts will be made to find displaced workers alternative jobs.

RSA's official statement sheds little extra light on the matter. A breakdown on where the job cuts might be occurring wasn't immediately available.

"[The] restructuring forms part of the plan that EMC announced back in Q4 2006, that it would consolidate some operations to deliver a more unified, cost-effective experience to customers — and to further the integration of the more than 20 companies that had been acquired within a three-year period," it said.

"We are still working toward completing the restructuring. In the meantime, both RSA and EMC continue to grow, and many employees whose jobs would have been impacted have found new positions within EMC." ®

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