EMC to lay off 2,400 workers

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EMC to lay off 2,400 workers

Storage vendor EMC will lay of 2,400 employees by the end of the year and is likely to post a loss for the fiscal third quarter.

In a statement, Joe Tucci, EMC's president and CEO said, it is "highly unlikely" the company will break even this quarter. To match expenses, the company would need $1.8bn (£1.2bn) in revenue during the quarter, he said.

Analysts polled by Thomson Financial/First Call had predicted the company would post a profit of $0.02 per share for its third quarter.

Last quarter, the company posted revenues of $2.02bn (£1.4bn), down slightly from the year earlier.

Along with the 2,400 redundancies, the company will also launch "sweeping" cost-reduction plans, encompassing real estate, certain inventory and "other areas," Tucci said in the statement. The company now expects to take a third-quarter charge of an undetermined amount.

The company said it hopes to be able to rehire some of the employees when the economy turns around.

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