Today, EMC agreed to shell out $2.4 billion to acquire Data Domain, winning a bidding war with Network Appliances. That $2.4 billion is a multiple of what a year of 401(k) match would cost the company. EMC is also a conservatively managed company, and when I left, I think they had something like $6 billion in cash reserves. Maybe that has gone down. Maybe, in the face of decreasing profits, they just had to cut the 401(k) match. But, apparently, they also needed to spend $2.4 billion to buy yet another company.
Update: I have corrected the name of the company EMC is acquiring to Data Domain.