EMC Corp., the largest maker of computer data-storage systems, is likely to consider cutting more jobs to cope with waning demand, the Wall Street Journal reported, citing analysts.
The Hopkinton, Mass.-based company cut 4,000 jobs last year and has already announced plans to shrink its payroll to about 19,000 by the middle of the year from 20,100 at the end of last year, the paper said.
Analysts say price reductions and falling sales won’t allow the company to return to profitability in the second half as predicted, unless it makes deeper cuts. They expect an additional reduction of as many as 1,900 jobs, or 10 percent of the workforce, the paper said. EMC spokesman Mark Fredrickson declined to comment, the paper said.
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EMC said in January it may return to profitability as early as the second quarter. Its fourth-quarter loss was 3 cents a share on sales of $1.51 billion. Customers cut spending on computer equipment or sought less-expensive alternatives as the U.S. recession began last year. EMC fired workers and slashed prices to compete with Hitachi Ltd. and International Business Machines Corp.
