Dell is planning on cutting 2,000 – 3,000 jobs after completing the $67 billion merger with EMC this week in the largest tech acquisition that has ever taken place.
Plans to cut jobs in areas such as marketing and administration are thought to be among the roles that are being axed. These roles along with many others are thought to be at risk because of Dell’s motive to save $1.7 billion as it strives to boost sales after the merger.
EMC, now known as DellEMC, sells storage data and security solutions to businesses was purchased in a multi-billion cash-and-stock deal. Founded in 1979, the company has over 70,000 of its own employees.
Speculation of job cuts initially surfaced last year, there were no further developments until the conclusion of this acquisition.
EMC’s deal with Dell has created 140,000 new jobs, but the job cuts for Dell’s existing employees are not planned to occur until later this year.
A statement from Dell read: “Dell is not commenting on the speculation. As is common with deals of this size there will be some overlaps we will need to manage. We will do everything possible to minimise the impact on jobs.”
The large deal will mean a much larger focus on big data and cloud solutions for the vendor. Without greater transparency from Dell about what the recent merger with EMC means for thousands of its employees, there will continue to be further speculation.