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, the Hopkinton, Mass., data storage giant, will lay off 1,100 workers, about 4 percent of its workforce, as part of a cost-cutting program that also includes delaying facilities expansion projects and reducing contractor and travel expenses.
Hardest hit will be certain field operations, corporate support staff and positions associated with the phased-out server business inherited with the 1999 acquisition of rival Data General. The reductions will take place over the next several weeks.
The company will take a 1 cent per share charge in the second quarter to cover severance pay and other restructuring costs.
Like other technology infrastructure businesses, EMC didn't expect the economic slowdown to drag on as long as it has.https://o1.qnsr.com/log/p.gif?;n=203;c=204650394;s=9477;x=7936;f=201801171506010;u=j;z=TIMESTAMP;a=20392931;e=i Staffing and other decisions were made "before the impact of the slowing economy and the disintegration of many Internet-related companies," the company said in a statement.
Despite the cuts, EMC, the largest employer in the Bay State, said overall employment will be about the same as where it started the year.
The company is also redoubling sales efforts. EMC will increase the number of quota-carrying sales representatives and systems engineers to push its storage software and hardware systems. It will also add engineering and customer service staff.
Earlier today, analysts at Goldman, Sachs lowered estimates for EMC because of the economic slowdown. The investment bank expects 14 percent revenue growth, compared to the 20 percent projected by the company.
Following the news, shares of EMC sank, 2.6, or 7 percent, to 34.5. In the last year, the issue has ranged from 25.2 to 104.94.