EMC Corp. in Hopkinton may cut as many as 1,000 jobs, mostly in the first part of the year, in a restructuring that will put greater emphasis on the small but faster growing parts of the company, while its traditional storage business slows.
David Goulden, head of EMC’s storage division, said the cuts are part of a “rebalancing” as EMC expands more into mobile technology, big data analytics, and data storage over the Internet. Overall, he said, EMC expects to end 2014 with roughly the same number of employees that it had at the start of the year. The company has a global workforce of about 63,000 people.
EMC has a history of these types of job reductions. Similarly, last spring it said it would cut 1,000 jobs as part of “rebalancing efforts.” These latest cuts are a continuation of that plan.
“After factoring in the rebalancing in 2013, we still ended 2013 with about 2,000 more employees,” said an EMC spokeswoman. The total charge associated with the cuts will be as much as $120 million.
Overall, EMC ended 2013 with annual revenue of $23.2 billion, a 7 percent jump over the previous year’s total but slightly lower than its own projection. Its core storage business grew by about 5 percent, while the part of the company focusing on emerging technology jumped 73 percent. EMC shares closed Wednesday at $24.65, down 2.88 percent.
Michael B. FarrellMichael B. Farrell can be reached at email@example.com.