EMC to lay off 2,400 workers


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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