Dell to Cut 10% of Its Global Workforce

Advertisement (Why?)

Dell Incorporated has announced plans to cut costs by reducing its global workforce by 10%. Dell currently has a global workforce of over 88,000 employees and expects to trim more than 8,000 employees over the next twelve months. "The reductions will vary across geographic regions, customer segments, and functions, and will reflect business considerations as well as local legal requirements,” the company said. Interestingly enough, Dell witnessed operating income of $947 million USD for Q1 FY2008. This was up from $762 million USD in Q1 FY2007.

"Our strategic intent is to simplify information technology for our customers by removing cost and complexity. No other company is as well positioned to unlock value for our customers - empowering them to implement simpler and smarter technology solutions. While reductions in headcount are always difficult for a company, we know these actions are critical to our ability to deliver unprecedented value to our customers now and in the future," said Michael Dell, the company’s founder and CEO.

News source: DailyTech

(1 reply) #1 Thrawn on 01 Jun 2007 - 00:14

Ouch, they aren't doing so well over at Dell... you don't see Apple or Google needing workforce reductions.

#1.1 Hurmoth on 01 Jun 2007 - 00:18

How are you comparing those three companies? Dell=88,000 employees, Google=12,238, Apple=17,787 full-time; 2,399 temporary. There's no comparison of the three, that and Google isn't a computer manufacturer.

(2 replies) #2 WICKO on 01 Jun 2007 - 00:51

Makes you wonder... what the hell were those 8000 people doing?? Not that I blame them or think they weren't doing their job or anything.. but what kind of workload will these other people receive now?

And is it just me, or does this seem to be a regular occurence lately?

#2.1 Lt-DavidW on 01 Jun 2007 - 12:25

Quote -

10% more work?

#2.2 WICKO on 01 Jun 2007 - 18:10

Quote - (Lt-DavidW said @ #2.1)

Not true, you really think it would distribute evenly?? Come on...

(2 replies) #3 Garry on 01 Jun 2007 - 01:02

I left Dell in June 2006. Sad to think that some of my friends are inevitably going to lose their jobs. To be honest though there are a LOT of unncessary managers at Dell.

#3.1 Marshalus on 01 Jun 2007 - 01:03

That is a problem a lot of companies have.

#3.2 Hurmoth on 01 Jun 2007 - 01:06

^ Very true. The company I work at is the exact same way.

#4 RazorEye on 01 Jun 2007 - 01:38

My company has been a reseller for Dell since last year. We've noticed our profit margin shrink ever so slowly over the last few months all the way up to the announcement that they will be using Walmart as a nationwide reseller. I don't think it is too much to think that a large chunk of these people will be there loss of people at reseller processing centers as they eventually move to only going through Walmart and avoid us individual companies.

Also, Dell released some numbers to Wall Street today and is doing better than they even thought they could. I doubt this is a slimming down move to save money for money's sake, but rather a streamlining their proccesses as they adjust to a new distribution arrangement.

(1 reply) #5 giantsnyy on 01 Jun 2007 - 02:34

oh i see they're following the circuit city method. (i work for cc... it sucks watching your friends, including your department manager who is one of those friends just be let go cause they make too much money or they're "not needed" anymore)

#5.1 Flae_qui on 01 Jun 2007 - 18:10

Quote - (giantsnyy said @ #5)

but did they not allow them back... but with lower pay? still messed up though

(3 replies) #6 Farstrider on 01 Jun 2007 - 02:39

"Our strategic intent is to simplify information technology for our customers by removing cost and complexity."
This should read, "Our strategic intent is to see how much profit we can extract out of even fewer people!"

#6.1 Hurmoth on 01 Jun 2007 - 02:44

If those people aren't needed then why keep them? Who's to say that those job positions are needed anymore? As a shareholder I expect Dell to cut cost and if those positions aren't needed anymore I expect Dell to get rid of those positions.

#6.2 stgeorge on 01 Jun 2007 - 11:57

The problem is that a large company is not allowed to pick and choose who to put into a layoff, they can only say "we laying off 10%" and then they pretty much randomly pick the people to avoid discrimination lawsuits, so you end up losing a lot of good people. Quality pretty much is not considered anymore in quarterly-profit driven companies.

#6.3 Hurmoth on 01 Jun 2007 - 13:45

Quote - (stgeorge said @ #6.2)

They can choose who layoff, depending on the laws of the state. Here in Virginia, you can fire anyone for any reason, layoffs are the same way. And most likely they'll give the employees they're laying off some kind of severance package, but they can layoff certain individuals, my company does it all the time.

Commenting has either been disabled on this article or you are not logged in. Click here to login or register, its free!

Note: Anonymous commenting is disabled in order to keep the quality of responses to a high standard.

Neowin.net