todays's wsj.
EMC Says Cuts of Less Than 3% of Jobs
Don't Reflect Any Downturn in Business
By JERRY GUIDERA
Staff Reporter of THE WALL STREET JOURNAL
EMC Corp. quietly fired several hundred employees last week, in one of
the data-storage company's biggest across-the-board cuts in years.
The layoffs, which the company didn't announce publicly, amount to less
than 3% of EMC's 24,000 employees, said company officials. The move
comes as several other high-technology concerns are reducing their work
forces in cost-cutting efforts.
But EMC, of Hopkinton, Mass., said its
reductions were part of a tough annual-review
process by department heads and were based
solely on individual performance. EMC cut
about 10% of its work force in 1995 as part of the same review system.
The company said the firings weren't a reflection of a business downturn.
"We've let people go who are not what we need now," said EMC
spokesman Mark Fredrickson. "It's not being done to reduce costs or
head count." He added that EMC still intends to add 7,000 to its work
force this year and reiterated the company's prediction that 2001 revenue
will rise 35% to $12 billion.
"There's no change at all in the tone of demand or the strength of our
business," said Mr. Fredrickson.
Word of the firings spread quickly on investor bulletin boards late last
week, reaching jittery investors and weighing on the company's stock. At
4 p.m. Friday in New York Stock Exchange composite trading, EMC
shares were down $3.10 to $56.40. |
