Dell Inc. has recently completed the acquisition of data storage company EMC for a staggering $67 billion. And now reports saying that Dell Technologies, the combined entity is planning to cut about 2,000 to 3,000 jobs has started making rounds on the interwebs. The new company currently has over 140,000 employees working for them.
According to sources aware of the development, the work-force reductions are planned for later this year. It will mostly involve personnel belonging to the supply chain, and general & administrative departments, working in the US offices.
As is common with deals of this size, there will be some overlaps we will need to manage and where some employee reduction will occur. We will do everything possible to minimize the impact on jobs. We expect revenue gains will outweigh any cost savings, and revenue growth drives employment growth,
said Dell spokesperson Dave Farmer in an e-mail.
Though the overlapping functions and dismissal haven’t been made public yet, but the company plans to announce them soon. It is taking these diligent steps to primarily cut down costs and save about $1.7 billion in the first eighteen months of the transaction. It is, however, also largely focused on driving growth and boost sales several times the aforementioned amount.
The $67 billion deal between Dell and EMC came as a surprise to all, but received widespread support from EMC shareholders. The former first announced that is had signed a definitive agreement to acquire EMC in October last year. Though, the transaction faced some regulatory hurdles on the way, it finally announced the completion of the acquisition a couple days go.
This acquisition has left behind many other humongous technology deals to have been announced this year, including the $26.2 billion Microsoft-LinkedIn deal, and the $41 billion Softbank-ARM acquisition. This acquisition and merger is also one of the most complicated ones, as there is certain overlap in technologies between the two. Just before the deal was finalised, VMware , a major part of the company, was having problems fitting in. But, it seems that the two will finally hit it and work it out together.
