Most of the cuts will be in the U.S. and will be focused in areas such as supply chain jobs; general and administrative positions; and marketing, according to Bloomberg.
The layoffs don’t come as a surprise, as almost every big merger has them. Dell is expecting to save about $1.7 billion in the first 18 months after the reductions and expects to boost sales by several times that amount, Bloomberg reports.
The merger was initially valued at $67 billion and has created the largest IT infrastructure company in the world. It provides an interesting contrast to Hewlett Packard Enterprise (HPE), which has been slimming down and just sold its software business to Micro Focus for roughly $8.8 billion.
Dell’s PCs and servers will continue to be sold under the Dell brand name, while the former EMC’s products will use the Dell EMC name. The companies have already jointly worked on new products and could arrive shortly after the merger, as CEO Michael Dell noted at VMworld recently.
Combined annual revenues for Dell Technologies are around $74 billion per year. The company employs 140,000 in 180 countries, with an annual R&D budget of $4.5 billion.