Storage market leader EMC has announced that it will reduce its worldwide workforce by 1100, or four per cent, in an effort to streamline expenses.
The job cuts, about three-quarters of which will take place in the US with the remaining quarter affecting Europe, are among several steps the company says it is taking to increase its market share.
EMC spokesman Mark Fredrickson said that despite the layoffs, the company continues to expect "modest" profit growth in 2001.
The cuts, which will be implemented over the next few weeks, are aimed at eliminating overlapping positions in field operations and employees at its corporate and international headquarters. The action also includes trimming the use of consultants and contractors and delaying facilities expansion.
Despite the cuts, EMC said its long-term strategy still calls for growth in staff as it fights to increase its share of the information storage market, which the company said could be worth $50bn this year.
EMC has been facing increasing competition from IBM and Hitachi. According to analysts, EMC is expected to have second-quarter sales of $2.55bn compared with first-quarter sales of $2.34bn.
Since the start of the year, shares in EMC have fallen 47 per cent and closed on Tuesday at $33.99.
The company said it still expects to invest $1bn in research and development this year, and that it is investing heavily in its internal information technology infrastructure.
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