EMC goes on the chainsaw diet to slash $850 million
Happy new year - goodbye
EMC's preparing for a huge round of layoffs, announcing last Thursday that it's set aside a quarter of a billion, US$220 million of it for cash payments.
In advance of its acquisition by Dell, the company is hoping to carve $850 million out of its cost base.
Last October, El Reg predicted the Dell/EMC stroll down the aisle would result in massive consolidation. Since this is well before the acquisition completes – the final sign-off date is the middle of 2016 – it could easily be only the start.
According to EMC's SEC filing, most of the layoffs are due this quarter, and the “reduction in force” will be fully completed by the end of 2016.
Dell has also started cleaning out the garage. Last November, rumours emerged that units with substantial EMC overlap are to be sold. The company has not yet said whether the original Reuters report was accurate. ®