Happy New Year: EMC Layoffs Will Cost $250 Million

December 31, 2015, 11:04 PM UTC
Key Speakers At The Oracle OpenWorld 2013 Conference
Joseph "Joe" Tucci, chairman and chief executive officer of EMC Corp., waves after speaking at the Oracle OpenWorld 2013 conference in San Francisco, California, U.S., on Tuesday, Sept. 24, 2013. Oracle, the world's largest maker of database software, is focused on banking, telecommunications and retailing customers and is also seeking to spur sales by appealing to budget-minded businesses. Photographer: David Paul Morris/Bloomberg via Getty Images
Photograph by David Paul Morris — Bloomberg via Getty Images

EMC (EMC) 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.

Read More

Artificial IntelligenceCryptocurrencyMetaverseCybersecurityTech Forward