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After all the positive spin about the Dell-EMC merger as the transaction completed, it has emerged that the newly created Dell Technologies plans to cut 2,000 to 3,000 jobs by the end of 2016.
The bulk of the cuts will be in the US of supply chain, general , administrative and marketing jobs, sources told Bloomberg.
The new company, which has around 140,000 employees, expects the cuts to save about $1.7bn in the first 18 months.
Dell spokesman Dave Farmer said in a statement: “As is common with deals of this size, there will be some overlaps we will need to manage and where some employee reduction will occur. We will do everything possible to minimise the impact on jobs.”
He added that Dell Technologies expects revenue gains to outweigh any cost savings, and revenue growth to drive employment growth.
Dell announced plans to acquire EMC for $67bn in October 2015, saying there would be no sell-off of EMC assets because all product lines are complementary.
The transaction closed officially on 7 September 2016 to create the world’s largest privately controlled, integrated technology company, with revenue of $74bn.
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Dell Technologies chairman and CEO Michael Dell said in a statement that by combining Dell and EMC, the new company will be “exceptionally well-positioned” for growth in the most strategic areas of next-generation IT, including digital transformation, software-defined datacentres, converged infrastructure, hybrid cloud, mobile and security.
He said investment in research, development and innovation, along with the company’s global workforce, will give Dell Technologies “unmatched scale, strength and flexibility”.
Dell Technologies is positioning itself as the IT company to help CIOs support digitisation. Its core value is a fully integrated software-defined datacentre (SDDC), and analyst Forrester expects the new firm to build on the SDDC credentials of EMC following the merger.