Menu
EMC plans layoffs in wake of weakened outlook

EMC plans layoffs in wake of weakened outlook

The company didn't say how many employees will be let go

Storage giant EMC will soon start handing out pink slips as part of a new restructuring effort prompted by a weakened financial outlook.

Though it didn't specify how many staffers will be laid off, EMC said on Thursday that most of the job cuts will be made by the end of the first quarter, with the remainder completed by year's end.

"The company will place priority on shifting impacted individuals to faster-growing areas of the business," said company spokeswoman Katryn McGaughey. EMC still expects to end 2015 with more employees than it had at the beginning, she added.

The plan is expected to cost EMC between $130 million and $150 million.

EMC announced the restructuring along with its fourth-quarter and full-year 2014 financial results, which included record fourth-quarter revenue of $7 billion, up 5 percent year over year. Net income for the quarter grew 12 percent to $1.15 billion, or 56 cents a share.

For the 2014 year, EMC's revenue was $24.4 billion, an increase of 5 percent.

With fourth-quarter and full-year revenue each up 16 percent, EMC's VMware business -- in which it has an 80 percent stake -- helped to buoy the company's financial results. Another key contributor was its Pivotal Software business, whose fourth-quarter revenue grew by 18 percent and full-year revenue jumped 27 percent.

Still, while EMC's fourth-quarter results were positive on the whole, its forecast for 2015 was less rosy. Citing the ongoing negative impact of currency fluctuations, the company predicted revenue of $26.1 billion and earnings of $1.98 earnings per share for the year.

The consensus estimate from analysts polled by Thomson Financial was for earnings of $2.13 a share on $26.21 billion in revenue.

Over the upcoming year, EMC will buy back $3 billion of its common stock, it said. It will also have to grapple with continuing pressure from activist investor Elliott Management, which has reportedly urged the company to spin off VMware and pursue other strategic opportunities.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags storageemc

Featured

Slideshows

The making of an MSSP: a blueprint for growth in NZ

The making of an MSSP: a blueprint for growth in NZ

Partners are actively building out security practices and services to match, yet remain challenged by a lack of guidance in the market. This exclusive Reseller News Roundtable - in association with Sophos - assessed the making of an MSSP, outlining the blueprint for growth and how partners can differentiate in New Zealand.

The making of an MSSP: a blueprint for growth in NZ
Reseller News Platinum Club celebrates leading partners in 2018

Reseller News Platinum Club celebrates leading partners in 2018

The leading players of the New Zealand channel came together to celebrate a year of achievement at the inaugural Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months, with more than ​​50 organisations in the spotlight.​​​

Reseller News Platinum Club celebrates leading partners in 2018
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP has honoured its leading partners in New Zealand during 2018, following 12 months of growth through the local channel. Unveiled during the fourth running of the ceremony in Auckland, the awards recognise and celebrate excellence, growth, consistency and engagement of standout Kiwi partners.

Meet the top performing HP partners in NZ
Show Comments