Low sales figures means Massachusetts-based enterprise content management company EMC will be cutting pay for most of its employees by 5 percent.
Last week the company announced that first quarter earnings fell 23 percent, yet the EMC still met profit forecasts. However, the Documentum maker said sales were down and profit margins would be lower for all of this year than they were in 2008.
The company says that sales figures fell 9.2 percent during the first quarter to $3.14 billion – $100 million lower than expected.
Joe Tucci, EMC CEO, says the company believes the industry is poised for recovery and expects improvements during the end of this year.
"We expect [information technology] spending to improve in the second half of 2009 as customers will have better budget visibility, be further through their own restructuring programs and broader stimulus packages should be underway," Tucci said.
Last month the company announced that it would be cutting the pay of its executives with five of the top employees in the company taking a 10 percent pay cut for 2009.