Feeds

EMC preps (limited) layoffs

Company-wide efficiency drive

Build a business case: developing custom apps

EMC is responding to the deepening recession by laying off a small number of employees from around the company.

Up until now, EMC has been focussed on controlling indirect spend - travel costs, for example - but the global recession is having its effect. In early November, CEO Joe Tucci sent around an e-mail saying that although EMC had had good results from controlling indirect spend, the increasingly-challenging environment meant that the time had now come to look at people spend as well.

My understanding, from a person familiar with the situation, is that Tucci laid out six principles guiding EMC's activities, and these are:-

1. Maintain external focus, staying closer than ever to customers.

2. Gain share in top markets.

3. Retain, attract, and develop key talent.

4. Sharpen discipline on costs.

5. Sustain and extend product technology, assuring an enhanced competitive advantage.

6. Stay close and communicate frequently.

I'm told that the email went on to say that he had requested his EVPs to look across the entire business for efficiencies. EMC will try extremely hard to keep job losses to a minimum and will take whatever steps in it can, in terms of severance deals for example, to mitigate the effects on the people laid off. Tucci wants everyone in the company to go the extra mile to help in taking the internal actions necessary without reducing the strong focus on customers required for them to meet their goals.

So far the storage supplier world has not been hit by any tier one firm laying off people. Quantum is laying off 180 employees and Pillar let 150 people go at the end of October. Other suppliers affected by the recession have preexisting stresses and include Overland Storage and Plasmon.

The EMC numbers have not been quantified but several sources say that the layoffs are small and modest in quantity.

This EMC activity tallies with other measures being taken by Cisco and other large IT companies as the recession looks likely to be longer and deeper than originally anticipated. It is in line with the server sales alarm calls being raised by IDC.

The thought on every storage vendor's mind right now is that if the recession can affect broad-based, huge, and well-run EMC, even in this relatively small scale way, then no one is immune. ®

Build a business case: developing custom apps

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
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.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.