#Dell Inc. is expected to mark its buyout of #EMC Corp. with a briefing Wednesday but it probably won't disclose any details about possible layoffs, analysts said. During the morning conference call with analysts and media, executives with the Round Rock company are due to discuss the EMC deal but not anything related to redundant positions created by the combined company called #DellTechnologies Inc., said Roger Kay, president of Massachusetts-based Endpoint Technologies Inc.
Dell agreed to pay EMC shareholders $24.05 a share as well as 0.111 shares of a tracking stock related to California-based VMware Inc. (NYSE: VMW). Shareholders approved the deal in July.
Total value of the merger was initially expected to reach $67 billion. But it has also been reported to be valued between $60 billion and $63.4 billion.
On Wednesday, Dell Technologies is expected to bask in the glow of pulling off the merger while reiterating its claim that the combined company has a future as a major supplier of end-to-end technologies, Endpoint's Kay said.
“This is a time to celebrate a long and arduous deal that took many months to complete,” he said.
Dell, the No. 3 computer maker in the world, employs 13,000 workers in Central Texas. The company has made several moves in the last several years to offset declining demand and narrowing profit margins generated by its most prominent product, desktop computers.
Dell has posted losses for the last three years. During fiscal 2016, it reported a loss of $1.1 billion on revenue of $54.8 billion compared with a loss of $1.2 billion on revenue of $58.1 billion during fiscal 2015, SEC filings show.
Last year, EMC reported a profit of $1.9 billion, down from $2.7 billion in 2014.
It's likely that the finance, legal and administrative functions of the combined entity will need to be pared down in the merger of two big companies. Such cuts could total as much as 2,000 workers, but layoffs would probably be done gradually, Kay said.
“I see it as kind of inevitable that there would be a downsizing of something,” he said. “It’s pretty clear there will be some adjustment in headcount during the next year.”
The acquisition of Massachusetts-based EMC (NYSE: EMC), which was first proposed in October 2015, comes after a final regulatory approval by China’s Ministry of Commerce, paving the way for the largest technology merger in history.
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