Aussie EMC workers survive sackings

1250 jobs to be axed

Australian employees at storage manufacturer EMC have survived large-scale sackings as the company prepares to axe as many as 1250 jobs.

Despite a $US283.7 million third quarter net income which exceeded analyst predictions, the company will concentrate sackings on redundant middle management rather than research and development or customer-facing positions.

EMC Australia and New Zealand managing director David Webster said local jobs were safe because EMC A/NZ is in a strong position.

"We do not expect the recent employment cuts to impact local operations at this time," he said.

EMC CEO Joe Tucci said the job cuts announcement in the US has surprised many of its 31,000 global staff.

The company, which has expanded into the information storage, protection, and security markets, has acquired $7 billion worth of investments since 2003 and now bills itself as an "information infrastructure company" rather than a storage vendor.

Even as EMC expands beyond network storage technology into security, virtualization and content management, it is preparing to cut more than 1000 jobs across the globe.

Earlier in the week the company reported third quarter net income of $US283.7 million, or 13 cents per diluted share, on revenue of $2.82 billion for the three months ended Sept. 30, exceeding analyst's estimates of 12 cents per share on revenue of $2.67 billion.

EMC plans to eliminate 1250 jobs as it consolidates operations in the wake of 21 acquisitions it has made in the last three years.

EMC, which is known for making network storage equipment, has expanded into virtualization technology with its acquisition of VMWare and network security with its $2.1 billion acquisition of RSA Security.

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