Data-storage company EMC, which is being taken private by Dell, announced on 31 December it will make an unspecified number of job cuts as part of a USD 850 million cost-cutting plan, writes the Wall Street Journal. A total charge of USD 250 million associated with the restructuring is expected to be booked by EMC.
The company's board approved the restructuring plan on 30 December. Most of the USD 850 million in cost cuts will come from moves not involving head count, like "process redesign and digitization and portfolio simplification," an EMC spokesman said.
In October, Dell and private-equity firm Silver Lake announced the acquisition of EMC for USD 67 billion in cash and stock. The deal is expected to be completed by mid-2016.
EMC was pressured to increase its stock price for more than a year after Elliott Management took a roughly 2 percent stake in the company and urged it to spin off VMware.
