Dell layoffs this week: 15,000 to be hit: report

Dell layoffs this week: 15,000 to be hit: report

Summary: Insiders say that Dell's anticipated layoff programme will begin this week, with roughly 15,000 employees due for the chop.

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TOPICS: Dell
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Credit: Dell

Dell's expected layoff programme is expected to begin this week, and over 15,000 people may lose their jobs worldwide.

Insiders speaking to the Register say that the PC giant's restructuring operation has resulted in cuts in every department, "some of these have already been downsized and are now being told to cut 15 per cent more heads."

The restructuring efforts of the now privately-owned PC maker are down to a falling PC market, slumping profit margins and a slow start in the mobile realm where Apple, Samsung and Google now dominate. As part of the company revamp, founder Michael Dell is trying to focus on enterprise-related services including cloud and mobile systems -- but this means that staff in sectors unrelated to the new business focus are at risk.

One of the publication's sources predicts the cuts -- which are expected to hit at least 15,000 people -- will be "a bloodbath" when it arrives this week. The severance package includes two months' pay plus an extra week for each year in Dell's employ, a bonus at 75 percent, health insurance for 18 months in the U.S. and some outplacement services at least stateside.

Dell's current chief financial officer, Brian Gladden, will soon be leaving Dell in order to "pursue career interests outside of Dell," and will be replaced by the Texas-based firm's chief accounting officer, Thomas Sweet.

Last week, Dell announced a partnership with Cumulus Networks to deliver Linux-based, bare-metal networking devices to businesses, to develop their "vision of the new data center 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."

Topic: Dell

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13 comments
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  • Rumor mongering

    OK, so the Reg, a yellowish on-line tech rag with an inclination toward sensationalized reporting and clever headlines, publishes the rumor of 15000 layoffs, so ZDNet publishes a second-hand rumor? And this is tech news? How about simply saying "Dell is expected to lay off some people this week. Stay tuned for more news."
    ben_myers@...
    • This is actually old news, and Dell has been pushing for resignations...

      Dell layoffs have been widely rumored for three weeks now, widely reported, and seem likely. What's more interesting, and missing from Charlie's report, was the news (which I can attribute to a quote at finance.yahoo.com) from Dell, and this is supposedly a direct quote via written statement in Dec. 2013:
      "Dell has announced an optional, global and voluntary separation program for eligible team members who choose to leave the company in exchange for the offer of a separation package to support their transition. Would note that we’ve taken steps to optimize our business, streamline operations and improve efficiency over the past few years. And we been consistent in saying that a critical element of our strategy has been, and always will be, about improving our cost structure and freeing up capital to make the investments in growth areas that matter to our customers.

      Like any prudent company, we’ll continue to evaluate and implement opportunities to enhance our operational effectiveness on an ongoing basis.

      We won’t have additional comment about the program, the number of Dell team members taking advantage of it or the cost involved."
      randysmith@...
    • Not a rumor

      This is not a rumor dumb ass. My son is a senior tech with Dell and I heard it from him first. These tech jobs will be going to India. My son will find out if he gets the axe Feb.4 or 5th.
      Learn before you just look stupid again.
      rheink
      • LONG before that I know Dell was going. . .

        My bro-in-law worked at the Texas division and knew his whole department was moving to mexico. They ask if he wanted to tag along.. . . LOL NOPE he said!
        When was this notice? Early 2011 summer.
        .
        I wonder.. .. .. is there anyone left at Dell to, 'Turn off the lights''????
        .
        fm-usa
    • no rumour

      It's no rumour that Dell already cut a week of vacation for everyone across the board.
      riesenslalom@...
  • Sorry Dell...

    You shouldn't not gone all proprietary on the general public and ya' shoulda' kept that kid as your spokesman...
    jonesboro500@...
    • I agree about the "Dell dude"

      nt
      thekman58
  • Dell Layoffs Announced

    Yup....15,000 laid off. Must be a recovery !
    franc182
  • RIP the old IT world

    Dell, HP, Intel, EMC (and many making multiple cuts) - the world is a changing in the world of IT and particularly hardware. Users are more fickle, more educated and have more access to the capability to buy on price. Also they are more likely to run hardware for longer with many solutions now cloud based, hardware updates are not needed as rapidly as previously and add to this the flexibility of tablets and you can see why the old world models and cost base does not work any longer for the historic big brand names.
    ianm32@...
    • I dont agree

      I think they just hit the big glass ceiling in the sky, I mean really how many computers can you sell to 300 million americans. how many pc's do you have at home I know I have 5 machines and now with phones picking up the slack on internet use, well its bound to slow down. unless they had a buy back program like a car dealership. lol
      _cal_
  • Too many smart people that don't know anything

    ..but are always willing to comment.

    Dell has never been a computer company. They are a sales and logistics company. Their value and growth was fueled by supply chain (ie buying cheap parts and putting them in a Dell case). It was good for consumers, but they essentially drove all value and profit out of the product are victims of their own success. They did they same thing with x86 servers.

    Consumer is basically dead and Dell, like many companies, is transitioning to a B2B focus. Dell has bought a bunch of companies that focus on the Enterprise market (Data Storage, software, etc) to pursue this goal. (BTW, they had to buy them as Dell has never made anything other than Dell stickers. They are an assembler and then outsourced laptop mfg to an ODM in China)
    Anyway, consumer PC sales is labor intensive so the focus on Enterprise will require less headcount and different skills sets. Look for huge layoffs in Consumer and client computing divisions and then hiring in other positions to support the new B2B focus.
    114SWH
  • Circling the Drain!

    Like I said, Dell is starting to circle the drain.

    You don't bet your company on the cheapest junk you can find and that is precisely what Dell is in the majority of people's minds. That won't change with their "services focus".

    You could go with someone who has the credibility and the name (IBM, HP, SAP, Salesforce, etc) or someone who is synonymous with "CHEAP JUNK" (Dell). Who are you going to pick.

    Mikey Boi got 1/2 right - he gave the shareholders back their money.
    itguy10
  • Dell voluntary separation

    The voluntary separation program has already happened. A number of people have turned in their badges and are gone as of yesterday.
    bmeacham98@...