Dell has announced that it may axe as many as 3,000 jobs following the completed acquisition of EMC last week.
The $67bn merger, one of the largest in tech history, created an organisation of 140,000 employees worldwide, and Dell plans to increase sales and save $1.7bn in costs over the next 18 months.
"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," Dell spokesperson Dave Farmer told Bloomberg.
"We will do everything possible to minimise the impact on jobs. We expect revenue gains will outweigh any cost savings, and revenue growth drives employment growth."
Most of the expected 2,000 to 3,000 redundancies will be made in the US and will affect marketing, supply chain and general administrative workers, according to Reuters.
Dell went private in 2013 when founder Michael Dell put up his own money to buy the company in partnership with private equity firm Silver Lake Partners.
Part of the funding for the EMC deal will come from the sale of some of Dell's software and hardware assets.
These include the SonicWALL firewall division, which is soon to be split off as a separate venture, and Dell's software unit, which is being sold to Francisco Partners Management LLC and private equity interests.
Much of EMC's value, meanwhile, is tied up in the company's controlling stake in virtualisation software provider VMware.
Like its rival HP, which split into separate software and hardware companies last year, Dell has been hit hard by the shrinking personal computer market and the rise of cloud vendors. EMC had been struggling with weak growth of its own.
The plan is that the new company will focus on converged infrastructure and integrated platforms for cloud computing. However, more lay-offs are likely if sales do not increase quickly enough.
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