Unlike some other Enterprise Content Management vendors, EMC has announced positive preliminary Q4 2008 financial results. The picture, however, is clouded by EMC’s intentions to reduce costs by approximately $350 million in 2009, which translates in EMC layoffs of about 2,400 employees (7% of the entire headcount as of September 30, 2008).
EMC Corporation announced that it expects Q4 2008 revenues of approximately $4 billion, which would be an EMC record for quarterly revenue. The company expects approximately 8% revenue growth compared to Q3 2008 and 4% growth over Q4 2007.
“To improve the competitiveness and efficiency of its global business,” EMC also announced a restructuring program in regards to its Information Infrastructure business, which does not include VMware. The program’s focus is to:
- Consolidate back office functions, field and campus offices
- Rebalance investments towards higher-growth products and markets
- Reduce management layers
- Reduce indirect spend on contractors, third-party services and travel.