Data Storage Giant EMC Announces Restructuring Plan, Job Cuts
EMC, the Boston-area tech giant known for its acquisitive streak, has announced a restructuring plan that is expected to result in a steep charge and job cuts this year.
The data storage provider expects to face charges of $130 million to $150 million because of a planned restructuring that EMC’s board approved Wednesday, the company said during an earnings presentation today. EMC (NYSE: EMC) also expects to cut an unspecified number of jobs in 2015—“a reduction in force which will be substantially completed by the end of the first quarter”—according to an SEC document, as well as multiple reports.
An employer of almost 64,000 in 2014, the company announced a similar restructuring plan last year. Hopkinton, MA-based EMC has always been an active acquirer, with M&A and internal innovation being integral pieces of growth strategy for the company.
EMC came to a standstill agreement through September 2015 with activist investor Elliott Management, after adding two Elliott-approved members to its board earlier this month.
The company reported $1.4 billion of net income for the fourth quarter, and $3.9 billion for all of 2014. It repurchased $3.6 billion of stock in 2014, and plans to buy back another $3 billion this year.