Dell enters into one of the largest acquisition deals with EMC Corp earlier last week, valued at about $67-billion, according to an announcement made year ago. Post acquisition, it seems the global tech giant, Dell has some major cost-saving plans ready for implementation soon.
The company is looking at some major cost-savings of about $1.7 billion in the first 18 months post acquisition of EMC Corp. The objective of this deal is largely focused on boosting sales by several times, while bringing together the leading provider of data-storage products and maker of severs and computers under one single entity.
The company will now operate under a new name of the combined entity called Dell Technologies. It will commence operations immediately following the close of the transaction.
“This is an historic moment for both Dell and EMC. Combined, we will be exceptionally well-positioned for growth in the most strategic areas of next generation IT including digital transformation, software-defined data centre, converged infrastructure, hybrid cloud, mobile and security,” said Michael Dell, chairman and CEO of Dell Technologies.
“Our investments in R&D and innovation, along with our 140,000 team members around the world, will give us unmatched scale, strength and flexibility, deepening our relationships with customers of all sizes.”
Dell Technologies blends Dell’s go-to-market strength with small business and mid-market customers and EMC’s strength with large enterprises and stands as a market leader in many of the most important and high-growth areas of the $2 trillion information technology market, including positions as a “Leader” in 20 Gartner Magic Quadrants and a portfolio of more than 20,000 patents and applications.
Competing with rivals such as Microsoft Corp, Amazon and Alphabet Inc.’s Google, the companies entered into a deal on September 7 expressed clear interest in cloud services and are grappling with the industry demands.
A spokesman for Dell, Dave Farmer’s email was quoted by Bloomberg reporting, “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 minimize the impact on jobs. We expect revenue gains will outweigh any cost savings, and revenue growth drives employment growth.”
While Michael Dell, Founder of the tech giant declined to provide any estimated numbers on the job cuts expected later this year at the U.S office, people familiar with the matter say the layoffs could be massive – close to 3,000 jobs.
Staff reductions will be seen in the areas of general and administrative processes, supply chain management as well as some marketing jobs. People in knowledge of the matter said, the information on areas of dismissals aren’t public yet.