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Why Dell-EMC job cuts globally may actually help its India operations

The new combined entity called Dell Technologies would have 140,000 employees globally and in India is expected to have around 33,000 employees, its third highest headcount among all geographies.

twitter-logo Venkatesha Babu        Last Updated: October 12, 2016  | 20:45 IST
Why Dell-EMC job cuts globally may actually help its India operations

After a year long gestation period, finally in September this year, Dell announced the completion of its massive $67-billion acquisition of storage company EMC, first announced in October 2015.

ALSO READ: No job losses in India because of merger: Dell-EMC

The new combined entity called Dell Technologies would have 140,000 employees globally and in India is expected to have around 33,000 employees, its third highest headcount among all geographies.

Much has also been written about the rationale behind the acquisition and whether Dell can really make a go at it in the marketplace. Remember EMC was not merely a storage play but also held majority stakes in virtualisation pioneer VMWare and security solutions provider RSA Software.

In its quest to be an all-encompassing player offering everything from Hardware, Software, Services, Security and Storage, and to get a larger slice of the pie from cloud, virtualisation, digital and other emerging technologies, Dell made this huge bet.

Even ahead of the integration, in the engagement period itself before the marriage was consummated, both EMC and VMWare had announced layoffs to cut flab and trim any likely redundant positions. So it was little surprise that less than a month after finally sealing the acquisition, there have been reports of 2000-3000 jobs being made redundant.

The good news is that the existing business of the companies are largely complementary and most of the reductions are in support functions, administrative overlaps, some marketing jobs as well as supply chain. Most of the job cuts are expected to be in US.

In India there is likely to be very little impact as it has been a growth area for the company. As Dell Technologies looks to make this acquisition work, it wouldn't be surprising if some of the work was offshored to a low-cost destination like India.

Focus on trimming fat and cutting costs may actually help Dell's India operations add to its numbers. The bigger challenge for the company right now is to make this integration work seamlessly, so that there are no marketplace disruptions which competitors could exploit.

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