January 7, 2009 / 10:20 PM / 11 years ago

EMC says to cut 2,400 workers, shares rise

BOSTON (Reuters) - EMC Corp EMC.N, the world’s biggest maker of data storage equipment for businesses, said it plans to cut 2,400 jobs, or 6 percent of its staff, to help weather the global recession, and its shares rose 7 percent.

The Hopkinton, Massachusetts-based company also reported quarterly profit excluding items that was in line with its most-recent forecast. It said it would take a charge of 10 cents per share related to the restructuring.

“Our goal is to position EMC for continued success throughout the downturn and for even greater success during the next economic growth cycle,” Chief Executive Joseph Tucci said in a statement.

EMC said it expects to report profit excluding items of 23 to 24 cents a share, in line with the 23 cent average forecast of analysts polled by Reuters Estimates.

The cost cuts will reduce annual spending by about $350 million in 2009 over 2008, the company said. That savings will increase to about $500 million in 2010.

EMC shares rose to $11.98 in after-market trade, from their New York Stock Exchange close of $11.18.

Reporting by Jim Finkle in Boston; editing by Carol Bishopric

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