Data storage company EMC is planning to cut jobs in Q4 2015 in a bid to reduce costs by $850 million annually starting in 2017.
EMC will also reduce facilities to reduce cost. The company did not reveal details during a discussion with analysts. EMC will announce more details once it finalizes the headcount.
The Hopkinton, Massachusetts-based company said revenue rose 2 percent to $6 billion.
EMC will cut $50 million through tighter spending and job cuts in the fourth quarter of this year. The company will increase the size of cost savings in each quarter until it reaches an annual rate of $850 million starting in 2017 by reducing other expenses, as well, in part by canceling underperforming products and closing facilities.
EMC is contending with weak demand for its priciest storage equipment by winning customers for new products such as flash-memory based devices, Bloomberg reported.
As a result, the company will reduce full year revenue forecast by $400 million. As per the latest earnings guidance, EMC expects 2015 revenue to be $25.3 billion and non-GAAP EPS of $1.87 for the year.
EMC Information Infrastructure revenue grew 1 percent year-over-year, VMware increased 10 percent and Pivotal increased 18 percent. Consolidated revenue growth in the Americas was up 9 percent year-over-year. EMEA was down 3 percent, APJ was down 1 percent, Latin America was down 15 percent.