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EMC Grabs Hatchet

EMC Corp. (NYSE: EMC) will cut around 1,250 jobs by the end of 2007 and wind down its three-year-old strategy of growth by acquisition. (See EMC Reports Earnings.)

Although EMC's financial results last quarter improved over the two previous lackluster quarters, CEO Joe Tucci spent most of today's earnings conference call discussing the company's overall strategy. (See Tucci: EMC's Problems 'Self-Induced'.)

Tucci sounded like he still needed to convince investors and customers of the wisdom of recent deals, especially the $2.1 billion pickup of RSA Security in June. (See EMC Secures RSA for $2.1B and Did EMC Overpay?.) EMC was criticized at the time for overpaying for technology outside of its core product area.

"We have replaced storage as the core of our universe with information," Tucci said today, adding EMC's focus is now on "information infrastructure." That includes storage, data protection, and security.

Tucci says EMC now has the pieces it needs for that strategy after spending more than $7 billion to acquire 21 companies since it picked up Legato three years ago. EMC has grown from 17,500 employees to more than 31,000 over that time, he added. Now he will reduce that number by about 4 percent.

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