EMC announces 2,400 job cuts

EMC is laying off six per cent of its staff

Storage giant EMC has announced plans to cut 2,400 jobs - about seven per cent of its staff - to help weather the global economic downturn.

The cuts will reduce annual spending by about $350m (£230m) in the year ahead compared to 2008, the company said, with savings increasing to about $500m (£328m) in 2010.

"We believe this will help us strike the right balance between achieving higher levels of efficiency and sustaining strong business agility and performance, without in any way compromising our ability to serve the needs of our customers over the long-term," said EMC chief executive Joe Tucci.

The firm said that layoffs would result in about $237m (£156m) in costs through the third quarter of 2010, and it expects to incur additional restructuring-related costs of between $76m and $101m by the end of 2010.

Several global tech firms including AT&T, Motorola, Sony and Sun Microsystems have also announced major layoffs recently.

EMC shares rose 11 per cent to $11.78 at close of trading on the news.

EMC could not comment on how many jobs were at risk in the UK but confirmed in a statement that the reduction would be split between a seven per cent reduction in the US and a seven per cent reduction in the non-US workforce.

"The workforce reduction will substantially be completed by the end of 2009 and fully completed by the third quarter of 2010," said a spokeswoman.