EMC Corp. said it will eliminate 1,004 positions as part of broader restructuring that includes several real estate lease terminations as well as hundreds of previously announced job cuts within its Palo Alto, Calif. VMware subsidiary.
The Hopkinton, Mass.-based IT storage giant said the cuts will impact positions in its Information Storage, RSA Information Security and Information Intelligence Group divisions. The reductions are slated to be completed within a year and will result in a $80 million charge, according to a document filed last week with the U.S. Securities and Exchange Commission.
EMC spokesperson Leslie Ogrodnick said the company first mentioned its plan to restructure in late January. At that time EMC said managers approved the workforce-reduction plan that would be “substantially” completed by the end of the first quarter 2013 and “fully completed” by the end of 2013. The company did not disclose the number of cuts or where those cuts would be made.
Ogrodnick did not respond to questions on where those cuts would be implemented or which facilities would be vacated.
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“For the last couple years, as EMC has been transforming our business, we have had ongoing rebalancing efforts,” she said in email to Mass High Tech Tuesday. “This most recent one, which was disclosed on Jan. 29, 2013, is relatively consistent with these actions to rebalance and reorganize our workforce to best align with the opportunities ahead. EMC intends to end 2013 with more employees than we had at the beginning of the year.”
In its recent filing with the SEC, the company said it expects to recognize between $20 million and $30 million in charges as it exits certain lines of business and consolidates facilities. For the three months ended March 31, EMC had $7.1 million in lease-termination costs related to facilities vacated in the period, compared to $3.7 million in the year-earlier quarter. The costs are expected to be utilized by the end of 2015, according to EMC.
This week’s announcement comes roughly three months after EMC disclosed that VMware would eliminate between 800 and 900 jobs while exiting certain lines of business and consolidating facilities. The total cost of that plan was expected to be in the range of $60 million to $75 million.
Date: May 7, 2013