EMC is cutting a 'number' of it's resources from RSA Information Security operation, according to a report published in the Boston Globe. The layoffs come after an earlier announcement that EMC is looking to cut 1,000 jobs at RSA and the company’s Information Storage and Information Intelligence Group by the end of the year.
Company's effort to increase its operational effectiveness at RSA and the other two businesses that comprise its Information Infrastructure business is no surprise, given its gross profit margins declined during the first half of the year over the same time last year, according to its filing with the Securities and Exchange Commission.
Although RSA’s revenues rose nearly 8 percent to $460 million during the first six months of its fiscal year over the previous year, its gross profit margin fell to 65.2 percent from 73.1 percent. A similar occurrence of rising revenues but declining profit margins happened with EMC’s Information Storage and Information Intelligence Groups, as well.
Last year, EMC announced plans to cut 1,163 positions, which left it with 60,000 employees worldwide at the end of 2012. An RSA spokesman noted, however, in an email to CRN.com, that while the company cut some of its positions in this most recent quarter, it was hiring for other roles and would exit 2013 with more employees than it started with at the beginning of the year.