EMC is to lay off unspecified number of staff, but the CEO points to rosy future of product portfolio
Storage giant EMC has admitted that a number of staff will lose their jobs in a fresh round of redundancies, but CEO, Joe Tucci used the company’s conference call to highlight the rosy future of EMC’s strategic investments in six new products.
During the call, Tucci revealed that he excepts each of the six products will bring home over $1bn (£663m) in revenues in the years ahead.
Indeed, according to BostInno, Tucci is very optimistic because Pivotal’s bookings grew over 75 percent, but he didn’t elaborate on what the six new products will be, but he did describe them as involving cloud, mobile, social and big data.
Yet all of that optimism will be of little comfort to EMC staffers after the company confirmed in a SEC filing that an unspecified number of people will lose their jobs.
“On January 28, 2015, EMC management approved a restructuring plan,” said the filing. “The plan consists of a reduction in force which will be substantially completed by the end of the first quarter of 2015 and fully completed by the end of 2015.”
EMC expects the total restructuring charge to be approximately $130 million (£86m) to $150 million (£99m). The job losses come despite a major restructuring in 2013, which saw the loss of 1,800 jobs.
EMC is under pressure from the likes shareholders such as Elliott Management Corporation, which wants EMC management to split the technology firm up in order to unlock what it perceives as hidden value. At one stage, EMC was in merger talks with Hewlett-Packard.
Meanwhile, it seems that the EMC Documentum division is to be rebranded into the Enterprise Content Division, and it appears to have a new man in charge, after tweets revealed a change of leadership.
A tweet from Rohit Gai, described as EMC’s “head of IIG Products” revealed that EMC’s Information Intelligence Group (IIG) is now Enterprise Content Division (ECD) and another tweet from EMC IIG VP Owen Taraniuk suggested that IIG’s leader Rick Devenuti has left, or is about to leave the building.
“Farewell to our beloved leader. Not a dry eye in the house. Rick, you will be missed.” he tweeted. It is assumed that the Rick referred to is IIG president Rick Devenuti.
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