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EMC to cut 2,400 from workforce

Storage giant EMC announces a 7 percent workforce reduction, despite preliminary record fourth-quarter revenues.

Storage giant EMC on Wednesday announced plans to cut 2,400 positions from its workforce, despite expectations of posting record fourth-quarter revenues.

The job cuts will represent 7 percent of the company's workforce, as part of a restructuring program that will also include consolidation of facilities and back office functions, and a rebalancing of products and markets.

EMC expects to cut $350 million in costs this year and as much as $500 million next year.

The cost cuts come as the company issued its preliminary fourth quarter forecast, in which it noted it expects to generate approximately $4 billion in revenues--a 4 percent increase over the same period a year ago. The company expects to generate net income of 23 to 24 cents a share, excluding restructuring charges. Those figures are in line with the company's previous forecast.

"We managed our costs and investments very carefully throughout 2008," Joe Tucci, EMC chief executive, said in a statement. "However, we believe this additional program will help us strike the right balance between achieving higher levels of efficiency and sustaining strong business agility and performance."