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January 4, 2016updated 31 Aug 2016 12:06pm

EMC plans job cuts in efforts to save $850 million

News: Majority of layoffs are expected to be completed in the first quarter.

By James Nunns

EMC is planning to make a large amount of layoffs as it looks to save $850 million.

January is typically the time of year where people look to cut back and EMC is no different. The company which is in the midst of an acquisition by Dell will be looking to severely reduce its cost base.

The company said that it has set aside $220 million for cash payments, with its SEC filing saying that the majority of layoffs are expected this quarter and the "reduction in force" will be completed before the end of 2016.

The number of layoffs has not been disclosed but the restructuring plan has already been approved.

EMC, which is being acquired by Dell for $67 billion said: "The total charge resulting from this plan is expected to be approximately $250 million, with total cash payments associated with the plan expected to be $220 million."

Dell announced in December that it had been looking to offload Perot Systems as part of efforts to raise cash before the acquisition of EMC.

Perot Systems is part of Dell’s technology outsourcing business and is expected to help the company to raise over $5 billion.

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Dell has made plans to sell $10 billion of its non-core assets, including software and services divisions as it looks to reduce the $49.5 billion debt burden it will assume after acquiring EMC.

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