by CIO Staff

EMC Layoffs on the Horizon

News
Oct 17, 20062 mins
Outsourcing

Even as EMC expands beyond network storage technology into security, virtualization and content management, it is preparing to cut as many as 1,250 jobs.

On Tuesday, the company reported third-quarter net income of $283.7 million, or 13 cents per diluted share, on revenue of $2.82 billion for the three-month period that ended Sept. 30, exceeding analysts’ estimates of 12 cents per share on revenue of $2.67 billion.

The results matched the 13 cents a share earnings per diluted share in the third quarter of 2005 for the Hopkinton, Mass.-based firm, on revenue of $2.37 billion. However, in the previous year’s quarter, EMC’s net income was $421.7 million.

EMC plans to eliminate 1,250 jobs as it consolidates operations in the wake of 21 acquisitions it has made in the past three years. EMC plans to take pretax charges of $150 million to $175 million in the fourth quarter, or about 6 cents a share, to cover the cost of the consolidation.

EMC, which is known for making network storage equipment, has expanded into virtualization technology with its acquisition of VMWare and network security with its $2.1 billion acquisition of RSA Security.

EMC forecasts fourth-quarter earnings of 9 cents a share on revenue of $3.16 billion.

-Robert Mullins, IDG News Service (San Francisco Bureau)

Related Links:

  • EMC, Microsoft Expand ECM Alliance

  • EMC Launches New Data Mgmt. Software

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