Deals and IPOs

EMC plans layoffs as it cuts annual costs by $850M

EMC Corp. world headquarters in Hopkinton, Massachusetts.
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EMC plans an unspecified number of layoffs ahead of its acquisition by Dell as the data storage company attempts to cut annual costs by $850 million.

It will take a charge of $250 million and make cash payments of $220 million as part of the cost-cutting plan.

The restructuring plan was approved this week, according to a regulatory filing Thursday. The job cuts would be substantially done by the end of the first quarter and completed by the end of 2016.

Dell said in October that it would pay $67 billion for EMC Corp., which is based in Hopkinton, Massachusetts. In addition to producing data storage equipment, EMC sells IT services to businesses, and owns an 80 percent stake in cloud-computing company VMware Inc. EMC has been under growing competition in storage from Amazon, Microsoft and IBM.

For Dell Inc., which went private in a $25 billion deal closed in 2013, the acquisition of EMC will help it bulk up in a segment of technology that has been more profitable than its core personal computer business.