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September 9, 2016

Dell set to axe 3000 jobs following EMC merger

Cuts will fall mainly on areas where the two companies can combine operations.

By Alexander Sword

Dell is set to cut up to 3000 jobs as it completes its merger with EMC.

The job cuts, said to be between 2000 and 3000, will mainly fall on the company’s United States workforce, Bloomberg reported.

They will mainly be in the supply chain, marketing and general and administrative divisions: areas where the two companies will be able to combine their operations in order to cut costs.

The 3000 lay-offs come from a total worldwide workforce of 140,000 employees.

"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. We will do everything possible to minimise the impact on jobs," Dave Farmer, spokesman for Dell, told Bloomberg.

"We expect revenue gains will outweigh any cost savings, and revenue growth drives employment growth."

The merger of Dell and EMC, completed in September 2016, created the world’s largest privately-controlled tech company, Dell Technologies, worth $74 billion.

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The acquisition was first announced in October 2015 when Dell announced its intention to buy EMC for $67 billion.

As a combined company, the rebranded Dell Technologies comprises Dell, Dell EMC, Pivotal, RSA, SecureWorks, Virtustream and VMware.

The best-known businesses under the Dell Technologies umbrella are the Dell client solutions business and the Dell EMC infrastructure solutions business – both of which are supported by Dell EMC Services. 

VMware, an EMC subsidiary that operates in the cloud and virtualisation space, also saw 800 jobs axed in January.

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