January 5, 2007 3:47 PM PST
EMC layoffs to cut deeper than forecast
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.