Happy New Year: EMC Layoffs Will Cost $250 Million
Funds will cover severance for employees as part of a plan to to cut $850 million in expenses.
EMC EMC -0.16% said on Thursday that it plans to spend $250 million on a restructuring plan that includes an undisclosed number of job cuts.
The company, which makes data storage equipment, revealed plans in July to cut $850 million in annual spending, but it did not disclose the associated costs for the restructuring. Based on a regulatory filing made late on New Year’s Eve, we now know.
The $250 million will cover severance for employees laid off, and other associated costs. The job cuts should be mostly done by the end of the first quarter and completed by the end of the year, EMC said.
Here is the complete text of the filing:
On December 30, 2015, as part of the previously announced program to reduce our existing cost base by $850 million annually, and consistent with prior restructuring actions to keep pace with changes in the industry, EMC Corporation management approved a restructuring plan. The plan consists of a reduction in force which will be substantially completed by the end of the first quarter of 2016 and fully completed by the end of 2016. The total charge resulting from this plan is expected to be approximately $250 million, with total cash payments associated with the plan expected to be $220 million.
WATCH: For more on the Dell-EMC deal
While all of this is going on, EMC is working to ensure that it’s planned $67 billion acquisition by Dell goes through. Dell CEO Michael Dell and EMC CEO Joe Tucci announced that deal, the largest ever in the tech hardware world, in early October. It is expected to close by the end of 2016.
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