EMC and its subsidiary VMWare will cut just over 1,800 post worldwide in a bid to cut expenses following disappointing company earnings for the first quarter of the year.
The details were revealed, just as EMC World 2013 is taking place, in the company’s most recent 10-Q filing with the US Securities and Exchange commission.
The statement reads “"In the first quarter of 2013, EMC implemented restructuring programs to create further operational efficiencies which will result in a workforce reduction of 1,004 positions, All of these actions are expected to be completed within a year of the start of each program."
EMC will cut 1,004 positions while VMWare will reduce its headcount by 800. That represents around two per cent of the estimated combined 78,000 employees (note that VMWare operates as a separate software subsidiary to EMC).
The cuts are expected to carry a combined one-off cost of $80 million (around £50 million).
Wall Street expected the software and storage giant to hit profits of 40 cents per share but it only managed 26 cents or $580 million. EMC share price shot up last Friday before the start of EMC World but has been marginally down since.
The company announced a new software defined storage platform called Vipr and is betting on it to change the way storage, as a discrete resource, is being defined within the entreprise.