Just like other acquisitions, Dell Technologies EMC Corporation merger has started layoffs rumors. People close to the company has told Bloomberg that about 2000 to 3000 employees will lose their job very soon. Speculations strongly suggest that the native US citizens will primarily come under the axe. Dell is presumably taking the harsh step to cut costs and channelize more profit.
Last year in October, Dell announced to buy EMC for an overwhelming amount of $67 billion. The acquisition brought together the renowned PC maker with the leading supplier of data storage solutions. Together, they aim to put a mark in the cloud storage industry after facing stiff competition from rivals like Microsoft, Amazon, and Google.
The reduction in the workforce will mainly impact the marketing and supply chain departments and also the administrative and general divisions. With the upcoming downsizing the company eyes a total profit of about $1.7 billion within 18 months from now. Presently around 140,000 people work in both Dell and EMC combined.
Dell spokesperson, Dave Farmer, told Bloomberg, “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. We expect revenue gains will outweigh any cost savings, and revenue growth drives employment growth.”
The mentioned “overlapping” are actually concerned with the real workers of the company. According to assumptions, Dell-EMC is planning to replace native US people with outsourced professionals from other countries. Even, there is a notable evidence supporting this; both companies have totally applied for over 5000 applications for foreign employees visas and Green Cards. Strong rumors suggest that these overseas workers mainly originate from India.
This swapping employees from the USA with foreign personnel is a real controversial thing for any tech company. This provocative motive of the businesses is a hot piece of debate in the Senate. About six months ago, a Senator wrote to the United State Justice Department to investigate the issue for any foul play. Although the tech lobbyists will inevitably calm down the senators pretty quick.
Basically, one way or the other Dell do need to make some money. The company is on the verge of overdrawing its corporate credit account. Additionally, the new EMC acquisition has put a lot of pressure on Dell’s financial division. In addition to laying off its employees, it is also putting a lot of emphasis on boosting the sales.
Meanwhile, OpenText Corporation has decided to take over Dell-EMC’s content division for a total of $1.6 billion. The former is one of the top enterprise software makers based in Canada.