Dive Brief:
- Dell Technologies plans to cut between 2,000 and 3,000 jobs following its merger with EMC, which closed earlier this week, according to Bloomberg, citing people familiar with the matter.
- Supply chain, admin and marketing jobs in the U.S. are the most likely to be affected, sources said.
- Dell officially completed its $62 billion acquisition of EMC Corp. on Wednesday. The new company, Dell Technologies, is now the largest privately held tech company in the world, with 140,000 employees and annual revenue of $74 billion.
Dive Insight:
The layoffs shouldn't necessarily come as a surprise, as overlap of employee responsibilities is common during mergers and acquisitions, especially in those that are on such a large scale.
The deal is likely to continue to spark industry changes because Dell Technologies will be one of the largest enterprise tech providers.
More internal changes can be expected as the company reviews its operations and may look to merge or close redundant business units. The merger already sparked a few leadership changes. On Wednesday, VMware announced that Michael Dell will take up the role of chairman of VMware’s board of directors, according to a Zacks report, replacing Joseph M. Tucci. Egon Durban was appointed to the company’s board of directors in place of John R. Egan.
