September 21, 2001, 9:34 AM — Storage vendor EMC Corp. will lay of 2,400 employees by the end of the year and is likely to post a loss in its fiscal third quarter ending Sept. 30 because of spending cutbacks by its customers, the company said.
It is "highly unlikely" the company will break even this quarter, Joe Tucci, EMC's president and chief executive officer, said in a statement. To match expenses, the company would need US$1.8 billion in revenue during the quarter, he said.
Analysts polled by Thomson Financial/First Call had predicted the company would post a profit of $0.02 per share for its third quarter.
Last quarter, the company posted revenue of US$2.02 billion, down slightly from the year-earlier quarter.
Along with the 2,400 layoffs, the company will also launch "sweeping" cost-reduction plans, encompassing real estate, certain inventory and "other areas," Tucci said in the statement. The company now expects to take a third-quarter charge of an undetermined amount.
The company hopes to be able to rehire some of the employees when the economy turns around, it said.
EMC, in Hopkinton, Massachusetts, can be reached at +1-508-435-1000 or at http://www.emc.com/.