EMC may cut more jobs as data storage demand slows

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.


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.


Bloomberg News