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EMC cutting 1,100 jobs
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May 29, 2001: 11:02 a.m. ET
Data storage firm trimming staff by 4% to level at start of year
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NEW YORK (CNNfn) - EMC Corp. said Tuesday it is cutting its worldwide staff by 1,100 positions, or about 4 percent of its work force, though the data storage company says the cut will leave it with about the same size staff as it began the year.
The Hopkinton, Mass., company said it will take an after-tax charge equal to about 1 cent per share in the current quarter to cover the cost of the staff cuts, which it said will take place over the next several weeks.
Shares of EMC (EMC: down $2.68 to $34.42, Research, Estimates) were off following the Tuesday morning announcement as well as an earnings estimate cut by Goldman Sachs analyst Laura Conigliaro. She lowered her 2001 earnings per share forecast to 76 cents from 81 cents, and the 2002 EPS forecast to $1 from $1.05.
Analysts surveyed by earnings tracker First Call forecast the company would earn 80 cents a share this year and $1.03 next before Conigliaro's estimate cut.
Besides the staff cuts the company said it also will cut costs by limiting the use of contractors and consultants, reducing travel and delaying some facilities expansion, although it did not identify any specific expansion project that will be affected.
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The company has been adding quota-carrying sales representatives, as well as systems engineers and customer service employees. It said it still expects to spend $1 billion this year on research and development. 
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EMC
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