Privately owned American multinational Dell Technologies Inc. will cut 2,000 to 3,000 jobs this year after acquiring EMC Corp. in the largest technology acquisition ever. The company which completed a $60 billion buyout of Hopkinton-based EMC Corp is seeking $1.7 billion in savings over the next 18 months. The acquisition brought together the leading provider of data-storage products and one of the top makers of servers and personal computers.
The company which targets a strength of a combined 140,000 employees for both the IT vendors are looking at a substantial reduction in the employee count in order to meet their target in savings. The 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.
“As is common with deals of this size, there will be some overlaps we will need to manage and where some employee reduction will occur. We will do everything possible to minimize the impact on jobs.We expect revenue gains will outweigh any cost savings, and revenue growth drives employment growth.”
-Dave Farmer, spokesperson for Dell
Dell executives have warned their employees that there would be some unspecified staff reductions after the merger, although they also have stressed that the company plans to grow by increasing sales of its PCs, servers, and data storage equipment and software.
“There are some overlapping functions and that sort of thing — that’s not the primary feature of this, but there is some of that.”
-Dell Founder, Michael Dell when asked about whether expanding revenue was the main focus of the recently concluded deal.
He refused to shed light on any estimate in the amount or number of job reductions which will take place.