Shares in storage giant EMC took a dive yesterday [Thursday] when the firm said it would axe ten per cent of its staff and may post third quarter losses.

About 2400 workers look set to lose their jobs after the company said it was "highly unlikely" to break even in the third quarter.

The announcement sent shares in the company spiralling down by around seven per cent to close at $12.62 yesterday.

EMC said the move was in response to a sharp drop in demand for storage products, and that breaking even would require an unlikely revenue of $1.8bn.

The company previously slashed four per cent of its workforce, or 1100 people, back in May. The new figures are in addition to those already announced.

Most of the cuts will be at the company's main campus in Massachusetts, where over 8000 workers are based.

See also:

EMC and Accenture join forces

Unit to tackle storage and consulting services  11 Jul 2002

Dell to resell EMC's Clariion systems

Alliance picks up where it left off two years ago  22 Oct 2001

EMC rejects 'wild' allegations

Storage giant denies 'improper accounting' claims  17 Oct 2001

Job cuts: Reality bites

Job-cut figures are skyrocketing as confidence about any imminent recovery in market conditions dwindles. Over the last three months the telecoms industry alone has lost over 290,000 staff, according to reports in the FT. And announcements at the end of July indicate that a further 10,000 UK IT workers will soon be out of a job.  29 Jul 2001

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