Dell Technologies Could Cut From 2,000 to 3,000 U.S. Jobs Post-Merger, Sources Say

ROUND ROCK, TX -- On the heels of their $63 billion mega-merger with EMC Corp. this week, Dell Technologiesofficials conceded that jobs might be cut as a result of redundancy -- as many as 3,000 positions, according to some media outlets.

News of the completion of the monster merger was released on Wednesday, a corporate union that creates the world's largest privately held tech firm. The two companies, Dell Inc. and EMC Corp. are now collectively re-branded as Dell Technologies.

Citing unnamed sources, Bloomberg News reports most of the cuts -- from 2,000 to 3,000 -- will be in the U.S., in such areas as supply chain as well as general and administrative positions and maybe some marketing jobs, according to the Austin American Statesman blog site dubbed 512tech

The combined companies collectively employ 140,000 people globally, with $74 billion annual revenue being forecast.

When reached, Dell Technologies didn't say outright if layoffs were likely or an estimated number of potential job cuts. At the same time, they didn't rule out such jobs shedding.

"We expect revenue gains will outweigh any cost savings, and revenue growth drives employment growth," Jim Hahn told the website. "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."

Industry analysts also predicted layoffs would occur in the wake of the merger.

“As with all mergers and acquisitions, the biggest challenge will be to sort out redundancies,” analyst Patrick Moorhead with Austin-based Moor Insights and Strategy previously told the American-Statesman.

Described as "extraordinarily complex" by the Wall Street Journal, the mega-deal took 11 months to complete and required the company to raise $40 billion in debt among other machinations.

Read the full story at 512tech >>

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