Dell Technologies, the name for the recently merged Dell and EMC, has begun laying off some of the combined company’s 140,000 employees. As many as 3,000 cuts are predicted, according to Bloomberg news. Dell confirmed layoffs started earlier this week but calls the number “not material.”
EMC has a large presence in the Triangle with manufacturing, research and development operations and a data center. Any local impact is not clear at this point.
Dell Technologies has not filed a notice with the state of North Carolina that would be required if mass layoffs had started.
“The number of employees involved is not a material number relative to Dell Technologies’ headcount of approximately 140,000,” Dell said in an email to media outlets in confirming the layoffs.”
“While job reductions are never our first alternative and we strive to minimize them, in a merger of this size they are necessary given some overlap in functions,” a spokesperson told the Austin American-Statesman newspaper. “We expect that revenue gains will outweigh resulting cost savings, with revenue growth driving future employment.”
Layoffs were not limited to Massachusetts, the company said. EMC’s headquarters were in that state.
The tech giant born as a result of the largest tech firm merger ever at some $60 billion, did not say where the layoffs were being made.
Dell, which is privately held, is based near Austin, Texas.
Bloomberg had forecast between 2,000 and 3,000 job cuts when the Dell-EMC merger closed in September.
Citing unnamed sources, Bloomberg had said “reductions are planned for later this year and will be mostly in the U.S. and in areas such as supply chain and general and administrative positions, as well as some marketing jobs.”
Dell was expected to seek close to $2 billion in cost savings post-merger.
Read more at:
http://fortune.com/2016/10/07/dell-layoffs-emc/
