Dell Memo Hints at Layoffs, Acquisitions

Michael Dell also may change Dell's direct sales model, according to a corporate memo that was leaked to the press on Saturday.

Michael Dell is considering layoffs and acquisitions at Dell Inc., according to a corporate memo that was leaked to the press on Saturday.

Dell could even change the direct sales model that moved his company from a Texas startup in 1984 to the world's largest PC vendor in 2006, according to the memo that Dell sent to his 78,000 employees on April 25.

"The direct model has been a revolution, but is not a religion," Dell wrote. In an effort to improve the company's results, Dell has already made broad changes in management, returning to his position as CEO in February and hiring a new slate of managers, many from outside the company.

Now the new leaders are ready to act, with a plan "to make profound changes and take well thought-out risks."

View: PCWorld News

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7 Comments

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I think it's fair to say that it was just going to be a matter of time before Dell start making changes in it's employment status, some folks are probably already polishing up there resumes to work at HP & IBM :eek:

They have got to do something to impress investors. They have already destroyed the hardware market and have done such a good job at it they can't even make good returns anymore. Chop some heads, offshore some more jobs, and buy up smaller companies is one way of doing it.

Perhaps something similar to a store within a store like Bestbuy? They already have kiosks in many malls.

And tax situation won't change much, since Dell Home already charge tax on most states.


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Michael Dell also may change Dell's direct sales model

Does it means that we will see Dell stores soon ?