Dell restructures with voluntary redundancies

Summary:PC maker Dell is keen to focus its future on enterprise, but is restructuring first by laying off employees in other departments as part of its 'voluntary separation program'.

Information technology giant Dell has confirmed that a "very small percentage" of its employees have quit in exchange for a severance package as part of what the company is calling a "voluntary separation program".

In a statement to the media, Dell said the aim of this is to take steps towards optimising its business, streamline operations, and improve efficiency.

While the now privately owned PC maker has not specified exactly how many employees will be affected, both globally and in Australia, earlier reports by ZDNet suggested that over 15,000 people will lose their job.

Although the company has noted while there will be "a few" reductions in a number of departments, it is also hiring in areas where it is seeing business grow, such as in areas of enterprise. This includes hardware and software development, engineering, and customer coverage worldwide.

Proof of its investment into areas of enterprise has been demonstrated by recent movements, such as by partnering up with Cummulus Networks in the US to deliver an open-source network. During the announcement, Dell said its "vision of the new datacentre networking model is an open ecosystem, where customers can choose among various industry-standard networking gear, network applications, and network operating systems to meet their business needs".

It's believed that the restructuring effort comes at a time where Dell is facing times of a falling PC market, dips in profit margins, and a slow start to entering the mobile space, which is already being dominated by Apple, Samsung, and Google.

The company also said that it will continue to review its operations "in an effort to remain competitive and determine where we can add the most value to customers".

Dell's current chief financial officer Brian Gladden, who has been in the position since 2008, will also be soon departing from the company to "pursue career interests outside of Dell".

Gladden will be replaced by the company's current chief accounting officer Thomas Sweet, who will continue to report directly to the PC maker's founder and CEO Michael Dell.

Topics: Dell, IT Employment

About

Since completing a degree in journalism, Aimee has had her fair share of covering various topics, including business, retail, manufacturing, and travel. She continues to expand her repertoire as a tech journalist with ZDNet.

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