EMC Cuts Workforce By 7%; Sees $248 Million Pretax Charge In 4Q
The company will cut 2,400 positions as part of an effort to reduce costs by about $350 million in 2009 and $500 million in 2010.
EMC said it will record a pretax restructuring charge of $248 million in the fourth quarter as a result of the restructuring. After taxes, the charge is $200 million, or 10 cents a share.
EMC expects to record additional pretax charges of $100 million to $125 million in 2009 and 2010 in relation to the program.
The restructuring plan will streamline costs to its information infrastructure business and doesn't include VMware Inc. (VMW). VMware's parent company, EMC, owns 85% of the company's stock.
Additionally, EMC said it expects fourth-quarter results in line with its October guidance.
In October, EMC's third-quarter net income dropped 17% amid restructuring and stock-compensation costs, although sales posted double-digit percent growth for the 21st straight quarter.
Shares of EMC were up 4.5% to $11.69 in after-hours trading.
-By John Kell, Dow Jones Newswires; 201-938-5285; john.kell@dowjones.com
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Publié le 07 janvier 2009 Copyright © 2009 Dowjones
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