RealTime IT News

Analysts Expect More EMC Job Cuts

Analysts expect data storage leader EMC to consider further job cuts the company tries to return to profitability in the second half of the year, according to a Wall Street Journal report.

Last year, the Hopkinton, Mass., company slashed 4,000 jobs (the largest round in September) to offset lagging sales and said it planned to eliminate another 1,100 by the mid-year.

Now some who follow EMC, including Enterprise Storage Group a Milford, Mass., research firm, expect a cut of up to 10 percent of its workforce, or about 1,900 jobs.

An EMC spokesman declined comment on speculation about future cuts, but told the newspaper the company its still hiring in key areas, including software and services.

In part because of aggressive cost-cutting measures, EMC posted narrower fourth-quarter losses.

The company also impressed upon its sales force to push lower-end storage systems as potential customers balked at large capital expenses. In addition to a sluggish economy, EMC also faced stepped-up competition from IBM and Hitachi Data Systems , among others.

At midday, shares of EMC, a one-time stock market darling, traded up 0.31, or 3 percent, to 11.01. In the last 52 weeks, the issue has ranged from 10.01 to 45. 96.