January 5, 2007 3:47 PM PST

EMC layoffs to cut deeper than forecast

Related Stories

EMC to acquire data management company

November 1, 2006

EMC acquires Network Intelligence

September 18, 2006

EMC's software spree takes shape

September 18, 2006

EMC to buy RSA for $2.1 billion

June 29, 2006
EMC plans to cut 1,350 jobs this year--100 more employees than it earlier expected--to consolidate operations that have sprawled after a three-year acquisition spree.

The storage and software company announced a consolidation plan in November, in which it said it would cut 1,250 positions and take a charge of $150 million to $175 million to pay for the restructuring. Its final consolidation plan, approved by EMC management on December 29 and outlined in a regulatory filing Friday, calls for the higher job cuts.

The plan is "designed to deliver a more unified experience to customers" and to improve the company's efficiency, EMC said in the regulatory filing.

Over the past three years, EMC has bought 21 companies, including the $2.1 billion purchase of RSA Security in June 2006.

The final plan's cost will fall at the high end of the predicted range: $175 million, or 6 cents per share, EMC said. The company will take the charge in financial results for the fourth quarter of 2006.

The layoffs are expected to be complete by the end of the year and account for about $130 million of the charge. Terminating real estate contracts and other contracts will cost about $15 million, and EMC will take a write-off of about $30 million to cover assets no longer expected to produce any benefits, the company said.

See more CNET content tagged:
EMC Corp., layoff, acquisition, software company

 

Join the conversation

Add your comment

The posting of advertisements, profanity, or personal attacks is prohibited. Click here to review our Terms of Use.

What's Hot

Discussions

Shared

RSS Feeds

Add headlines from CNET News to your homepage or feedreader.