This page has been archived and commenting is disabled.
Dude, "It's Going To Be A Bloodbath": Newly Private Dell To Fire 15,000
Curious why Michael Dell was so eager to take the company he founded private? So he could do stuff like this without attracting too much attention. According to the Channel Register, the recently LBOed company is "starting the expected huge layoff program this week, claiming numbers will be north of 15,000." Of course, with a private sponsor in charge of the recently public company, the only thing that matters now is maximizing cash flows in an environment of falling PC sales, a commoditisation of the server market and a perceived need to better serve enterprises with their ever-increasing mobile and cloud-focused IT requirements - things that do not bode well for Dell's EBITDA - and the result is perhaps the largest axing round in the company's history. But at least the shareholders cashed out while they could.

More on the upcoming layoffs:
We heard from people close to the Round Rock Dell HQ area that Dell management has every conference room booked, and every HR person and security staff member is at work. There are cuts in all departments, according to one of our sources, who says some of these have already been downsized and are now being told to cut 15 per cent more heads.
We hear the worldwide layoff number is now greater than 15,000 people.
Our insider commented: "It’s going to be a bloodbath.”
So what can those on the receiving end of said bloodbath expect? Not much. "The severance package is two months' pay plus an extra week of pay for each year of service, a bonus at 75 per cent, obligated COBRA health insurance for 18 months in the United States, and outplacement services (in the US at least)."
The internal justification for th move:
... Dell has started its Stateside layoffs this week. Internal company emails seen by The Reg mention “simplifying client support structure - both basic and up sell,” “client support structure combined - Consumer and Commercial come under one umbrella,” and “Up sell offers will align with Pro Support and will "evolve”. The “evolve” word could mean that further changes are coming.
Also known as trying to remain cash flow positive in a world that has long since moved on and left Dell in the dust....
We wish the company's billionaire founder well as he progresses with the bloodbathing, just as we wish the BLS the best of luck in the coming weeks as they use every seasonal adjustment gimmick known under the sun to make the 15,000 mass termination disappear. Wait, we know: it's all the weather's fault. And demographcs.
- 53672 reads
- Printer-friendly version
- Send to friend
- advertisements -


Go long gaming consoles, there will be some decent severance pay for these guys...
I just sent Carl "I Can Haz Tweet Sessionz" iCon an email suggesting that he "investor agitate" for a merger of Dell & Apple -
- d'Apple
- AppDell
-Delple
-Dapple
They can even fold Gateway into the commodity maker -
DappleGate
"IT'S A DELL".
Dude, your gettin a pink slip.
Large multi-national corporations suck donkey dicks!
Work local, shop local and get to know your neighbors. Starve the beast.
Dell is great and I am a loyal customer. It's sad to see them raped by the private equity brigade. I just bought a rack server, and I hope it's as good as the last one, which is still humming without ever a whimper after 8 years.
been using dell workstations and server since december 2002. windows xp pro and server 2003. have replaced all the motherboard batteries, and replaced the power-unit in the server a couple years back.
these machines are solid, they do exactly what i need for them too and i see no reason for capex.
bad news is, they are dropping support for xp and server 2003 in april.
may have to go apache on the server and redhat on the workstations, but the heck with replacing these workstations, only drawback is they are ide drives, but i have about 4 spares in the parts rack.
When your talking numbers like 15,000, that is serious something to look at whats going on
Full Layoff / Closing List: http://www.dailyjobcuts.com
/
Dell-ious!
Now, they'll place nets around Dell's HQ's to save the Obot woreshippers.
Yes Please, Dump USA Worker And Make It The China New Machines...
My friend lives in the Austin area [Round Rock, Geaorgetown, Cedar park, etc] and says there are thousands of Indians working for Dell.
What do they do now? That laboir market is flooded...UT alone has over 45,000 students and vomits what, about 10,000 Yutes a year into that market place?
If you lose your job at Initech you can always get another one at Penetrode. They have a better copy machine anyway.
15000 sheeple just found out there's no recovery. How ya gonna pay for your new Chrysler and house now?
BAAH BAAAH
Depends on whether or not they ever moved out of their parent's basement in the first place. Might not be as big an impact as you'd expect.
For me it looks like I will have ot replace my NVIDIA card (overheating all the time) with a new one and contemplate getting a new power supply.
Fuck Dell. They were one of the very first outsourcers that started that shit around 2001. This is just chickens coming home to roost.
Yeah, as predicted last year the AHA rollover is going to start to impact the last remaining US corps. in 1Q14. The rollover in payroll numbers will be the pin that pops the bubble, and forces Yellen to get really creative.
10% down from the top is still overvalued.
my first experience w/os was 1988 & it never stopped.
i'm w/u FD.
Lenovo
China's death bringer to the last bastion of American innovation.
Will Dell get Wanged?
Wang Laboratories, Inc. is a worldwide provider of computer-based office information processing systems including data, text, image and voice processing systems, as well as networking products. Wang's business activities also include consulting, support, and training services in addition to customer services which help businesses reengineer offices to improve productivity and quality. In 1992, despite $1.9 billion in sales, Wang posted a net loss of $139 million and began operating under the protection of Chapter 11 of the United States Bankruptcy Code.
http://www.fundinguniverse.com/company-histories/wang-laboratories-inc-h...
Wang was huge back in the day but couldn't keep it up with the stiff competition.
When the laws are written of, by & for the corporation, your Wang can do wonders!
lost my shorts, Private Equity in the form of Black Rock came to my town and bought the local short haul mining railroad and ship loading facility. They had it for a number of years and nearly destroyed it. No money in, all the money out. It was classic milking! No maintenance and no repairs unless needed to keep running, no modernization. Just milk the profits, nothing turned back into the company. Luckly Canadian National came along bought it out and now run a proper profitable rail road. The private equity suits may know finance, but as to running a rail road? Stupid Cunts! And I mean cunts.
You ever wonder what really happened or caused the tragic rail accident at the Quebec town last year? Was that company mismanaged or underfunded or what? CN and BNSF are one of the better rail cos. out there. Here's a good argument to have transportation related businesses in a pub co.
Wasn't that one of Warren Buffet's oil trains of death?
It was privately held. Due to the fact their insurance only covered 25 million -they were forced into bankruptcy. A "Black Rock" like equity fund just bought it for pennies on the dollar. I wish them luck. Since the demise of the paper industry in Maine, the only real consistent product to haul was oil. It was being moved from the Tar Sands fields to Irvings giant refinery in St. John NB. After this past summer's horific conflagration one can assume the Irvings will get their oil via some other method.
"fuck you, pay me" http://youtu.be/ZPtjyqgZAUk
Umm, dude- your "private equity brigade" is Michael Dell, and he really doesn't care about your loyalty- he's moving to wring out cash from this turd, because his name is on the door.
It's over.
Mike has moved on.
Thirty years later, their careers destroyed, their jobs gone, the last band of American IT workers submitted to the H1B visa workers at Round Rock, Texas. The great Personal Computing culture of the turn of the millenium was gone and the last American workers of any kind were soon to pass into history.
I hate it for them. Been there, done that and have the scars to prove it. I know some Dell folks - good people.
Same here. Life destroyed by outsourcing in 2002, new career since then, no job security in sight but latest gig has lasted awhile ... till the next wave of economic destruction by the globalists is rained down on the people to be 'competitive' (code word for 'fuck over as many american workers as possible and pretend its a cyclical phenomenom') .
The new MacDell Ultra MacBook Air
"Designed, Conceived, Programmed in California and Texas. Still built by child labor in China"
Built in Burma (now Myanmar), programmed in Nigeria, with free intercept/upgrades by NSA.
"simplifying client support structure"
Meaning talk to a dude in the Philippines about your Dell server. This crap is nothing more than outsourcing and less service.
Dell fucked up an order I put in and the Dell's Philippines support could not or would not give me the support line in Austin, Texas. The company actually hides the contact information of their managers and board.
I used to buy TONS of PCs and Eq. from them using their Website. Sometimes UPS had to put on another truck for deliveries to my home. No problems.
Got a call in 2007 from a sales person who would just love to be my rep. Funny thing was that the prices with the rep. were higher than on the Website. I did make one order for a SMB router that was somehow cheaper with the rep. They fucked up the order and it took MANY calls to them to get some nice girl in TN to fix it. Ridiculous! The whole time my rep. was unreachable. Then a week or so later they call to "check in" and got an earful.
I then started building the PCs and servers myself and ordering the rare router or other from them. Talk about them cutting their own throat.
Clients had problems too, but that's a topic for another day of Dell layoffs.
Bought systems from them way back when they were PC's Limited - one of the first smallish companies to go into PC's in a big way. But Dell's quality was a roller coaster over the years. They were knowingly shipping systems with ad hard drives for a while - a guaranteed way to piss off your customer base.
This is BS, my TV said the economy was doing great.
DAMN the WEATHER!!!
Can someone please bomb the clouds and the cold. Merica needs your help.
cnBS reported that e-commerce keystrokes fell 57% due to the Polar Vortex.
See, it was the thickened lubricant on the keys. The cold slowed 'em down.
No shit! I can't believe this! So funny! I HATE Dell! And I'm not buying another Crapple product ever again!
And just another pleasant reminder... FUCKING MAJOR SUPPORT HAS BEEN BROKEN YOU MOOKS!!
And did Urban Redneck go home yet to hunker down with some scotch like I said??
NEVER, but when did you say so (and I could use a really good Scotch, since I haven't touched liquor since perhaps Thanksgiving US-time) ?
(I'm keeping weird hours multitasking/procrastinating this week...)
You can tell by the smell.
"IT'S A DELL".
Dude, you haven't been getting a Dell. But don't worry, the Feds will bail me out.
Right?
RIGHT?
Collapse of another corporate clusterfuck.
"DappleGate"
Nice.
+100
Yapple Dapple!
friday there was 10,000 layoffs:
http://dailyjobcuts.com/
but, but, Bath House said things were looking up! The economy is coming back!
that fucking liar.
Hopeless Change.........
Dell is a shit hole to work at just like their founder. I know many of a poor sap who had to deal with the crap. Why can't we get rid of the managers who caused this mess? Oh wait, this is 'merica where average folk take it up the ass.
Typical GOP capitalists
Wow... Get over it.
If you seriously think this is an "it's the red|blue team's fault" problem, *you* are part of the problem. That's a manufactured illusion, and the real bastards love it when you choose to accept their version of reality. Wake up.
If we actually had capitalism, people could leave the company they were in, start their own business very easily and be their own boss.
Too bad the government suffocates everyone in red tape to where only corporations can comply with all the regulations that get cranked out every year.
To what Capitalism exactly, are you referring? Where does it presently exist?
Oh wait, this is 'merica where average folk take it up the ass.
Woody Allen
"..lay on your stomach...and don't tell mommy....it will be our secret."
So you know better than the current managers of Dell on how to run a profitable server, desktop and laptop business? Great! Just start one yourself! Since Dell is such a bad place to work at, may be you can feel happy for the 15,000 soon to be liberated from there. Perhaps the Dell managers should continue to do their job the way they are doing currently and liberate everyone from Dell.
HOLllEEEEE FUCK!
Ho Li Fuk
Sum Ting Wong
God their stuff is crap. The laptops are not bad but the desktops are pretty crappy. I had HP desktops last forever when Dell's failed.
Do these 15,000 be counted as unemployed or do they immediately go into the "no longer actively looking for work" bucket?
/sarc off
There is probably a way to outsource these jobs to India, or maybe automate them with on-the-phone voice synthesis.
And when that happens, Dell can start counting robots for its reported employment head count. And then BLS will follow that lead.
We'll get 500K/month job numbers when automated gizmos are counted.
HEY!
The the newly hired people in India are no longer looking for work, either!
Whata deal to get U down more for the Propaganda Channels.
Nice move Knukies!
these guys will be better off with unemployment benefits.
for statistics purposes they will not be unemployed somehow ...
WIN - WIN
typical after looking for a day, they go in to the "no longer actively looking pile."
If they get two months severance, they cant collect unemployment until the 2 months are up.
Couuld be longer for the people who have been there decades.
when did that change? i had a relative just get sacked & they tried to tell him he couldn't get ue. I told him bs & he got it.
Who would hire someone that had worked at Dell? I mean, seriously.
Its guaranteed this weasel company will give out some package deals so the unemployed will not be counted as unemployed. I've known several people that worked at Dellcatraz and its just one step short of the rock. All that is missing from the building design was bob-wire fences and a couple guard towers.
they've probably been outsourced to geo or cxw.
cheaper than chinese dontchaknow.
Actually, they will pink slip 15k full time workers and then create 30k new part time jobs with no benefits. Net employment for BLS will rise and Obama will use it as further proof the economy is in full recovery.
Very Bullish
BTFD
WTF is a Dell?
is that a pickle??? or is that dill?
An aborted iMac.
It's where the farmer lives, silly!
Some people can't tell the difference between a dell and a dale.
Lol... good one knuckles.
For our younger listening audience, knukles explained below:
http://en.wikipedia.org/wiki/The_Farmer_in_the_Dell
You're not getting "A Dell," you're getting Adele.
http://www.youtube.com/watch?v=rYEDA3JcQqw
So much for economic recovery. Just like with mortgages. Market is booming, yet layoffs are seen left and right in big companies. Who lays off people if business is expanding? No logic.
Who does? You do, if you can buy a robot to do that work.
Dell needs to channel stuff those computers. There's plenty of empty football field parking lots this time of year. Think of the possibilities, and the poeple of course.
Bush's fault.
Roger McNamee
Are thses people on or off the Wok Force?
Wok the Fuk!
isnt that the guys name who crashed the plan in SF
That's a lot of people. This will snowball too. No job, no lunch buying, no clothes buying.
Retail should be really dropping the hammer hard after this past season.
2014 does not look to be good for stability.
Yellen is going to have to untaper sooner than he would like.
pods
Brother owns a restaurant, worse start to the year since he's had it. Dell ain't alone in layoffs.
ZH anecdotal threads like that go like this:
25 commenters lay out what a disaster they are personally seeing.
1 guy shows up from the one solvent county of Calif or NY and tells us we're all full of shit and things are booming.
And then we all wonder if we are deluding ourselves and things really are going well.
1 .gov troll shows up from the one solvent county of Calif or NY and tells us we're all full of shit and things are booming.
Fixed that for ya.
"solvent county of Calif or NY"
Bwwwwahahaha - ouch it hurts to laugh so much!
Modify it to " One government troll from D.C. Area shows up, tells us he is now making more than a family physician and is on track to retire at full pay so all is well."
This is not a fictitious story, btw.
(In my best Jeremiah Wright voice) "Looks like the numbahs are comin' home to roost!"
I had a friend of a friend do the "you don't what your talking about" thing to me recently.
His basis was that "they are going to build a hotel on that closed car-lot over there." I laughed and then spelled out how the property owner was connected to the mayor and city council and how the town gets state and federal "incentive" funds to have this built. Additionally, that the whole thing is being financed by debt in a newly create corporation that they can later walk away from. I also pointed out that it is being build over three miles from the interstate and that there are several motels off of the interstate a half-mile down-No one is going to use it.
It is basically a public project with all the corruption and cronyism to boot but disguised as a private project. In other word, another get rich boondoggle for the connected and a shit sandwich for the rest.
He just gave me that blinking thing that the sheeple get when you hit them between the eyes with truth that they don't want to handle.
High five!
Maybe the one person is really a bot from Bangalore? Thank Satoshi911 for that insight.
I drove up Leamington Spa (England) High Street today; nearly every store has discount prices in the window. Quite a few shops closed down, this is an affluent area.
If QE Tapering = Female pubic hair waxing, is defninitely ceasing and we are going from a runway strip to full on Amazon bush in about a month me thinks! Get ready for the big stank!
Just shave it. Zero Hedge.
Best comment today. :-)
"Yellen is going to have to untaper sooner than he would like."
HAHA. I see what you did there.
"Dude, you're gettin' fired!"
I took my niece's laptop to repair yesterday.
$180 to "fix" the motherboard... mmkay, that's the price of a used new laptop.
@Unprepared
The problem may be as easy as some extra soldering. You maybe could also try one of those oven cook soldering methods, but the noxious fumes aren't nice.
Unplug the laptop. Pull the battery out. With it unplugged and battery out, hold down the power button for 30 seconds or so. Put battery back and plug back and try firing it up.
Under warranty they pay sub-contracted techs $25 to drive their own vehicle up to 50 miles to: pick up the parts at FedEx, drive to the customers home, disassemble the entire laptop to replace the motherboard, re-assemble, run diagnostics, confirm operation, and call in to Dell using your own cellphone.
Takes 2-3 hours so by the time you are done you got $8/hour not counting the gas and wear and tear on your vehicle.
That's better than ASUS support....which is non-existent. Will never buy, nor will I ever recommend an ASUS piece of garbage again.
ASUS makes a great motherboard, but getting into selling laptops/desktops was a huge mistake for them.
Same could be said of Acer buying Gateway.
Chasing a declining market.
I had one of these HP subcontractors go to one of my clients to replace a failed hard drive that was under warranty. After the guy left the client angrily called me to complain that the pc still did not work. I drove out to the client and took the pc cover off only to find that the HP tech put the new hard drive in the caddy and left. He did not bother to connect the power or data cable.
That's what you get for $8/hour.
We have one or two of them out to our site each week. They invariably come in two types: 50+ year old guys with technical backgrounds who can't find better, or <30 year old african immigrants. I can't imagine how either group pays the bills based on what they tell me, especially the older guys. It's a small miracle and testament to character that some of these guys still try to do a good job.
Used or NOS mobos on ebay dont cost $180.
Learn to work a screwdriver and read the service manuals Dell provides online.
Not minting anymore Dellionaires?
"Disability" is "hiring". President Dicksuck should run some ads informing the soon-to-be jobless of their "opportunities."
I thought disability was an "entitlement" with "rights"? Oh well whatever WTF do I know anyhow.
my wife has severe disabilities that prevent her from working. she worked for 35 years but has not worked for the last 2. she has immaculate records from some of the most respected specialist in the southeast and she was turned down for disability, she appealed and hasn't heard anything for 6 months.
meanwhile, every other person that comes into my office is "disabled". some of them look like they could lift tractors for a living.
its a bullshit scam just like everything else in this godforsaken shithole we call a country.
You got that right. How some of these lazy faker clowns get disability is beyond me. I think government gives it out just to lower the reported unemployment rate.
Sometimes it's the result of emo-stress of being ground down by a shitty suck-up IT Supervisor who knows nothing, and therefore does not push back on the demands of other suck-up supervisors in other departments. Just sayin'
just think.... if you're on disability. you get a one way ticket and a front row seat to band camp because you're of no use to the state. and the death row inmates... it's going to be a gas. i know i can't afford anymore taxes
btw... enjoy your posts
ooops! I just twisted my back reading ZH...ooohhh the pain..I think my leg is numb ...I may never be able to walk again, no, wait, I'm sure I'm paralyzed for life!
....where is that ssdi office?
Took my brother 7 years to get his claim approved. My only wish is if disability IS hiring they would hire investigators to snuff out the BS fraud. But what are the probabilities THAT'S every going to happen?
The FSA... it's not just a way of life. It's a disease.
i did read one article last week about some jackass that has been collecting disability for blindness for more than 15 years. they had video footage of this guy water skiing and driving a speedboat.
no kidding, really? people actually collect this that are not disabled.
i'm shocked. jeez, we have whole families that all collect dis checks, i guess they all know what doc to go to and how to manipulate it.
fsa
@SS,
I left corporate in 2012. They want me off any legacy bene's. Twice I've received letters for the corp from an outfit called Allsup. The letter is worded as tho if you don't reply your bene's get whacked. Of course that's not happened yet. It will tho. They're a hired gun for corp to enlarge the FSA & help them with their accounting fraud.
Just a thought, but maybe they can help your wife as it's obvious they know the system better than an ambulance chaser. I have no idea what their "cut" would be, but you can bet it ain't free.
If she were a newly arrived illegal alien then she would get full SS disability benefits for life and a pinata fillled with candies, EBT card, Obamaphone and FR notes.
I had a physician tell me years ago how whole families come in one by one to get disability. It pays better than welfare.
Also, they are often not actual citizens.
She have a college degree? That is your problem....
you're so right. it's an agenda 21 scam. when the scammers finally get it. if they're on ssdi they're on medicaid. it they're on medicaid & own property, they don't anymore. it goes to the state.
Well Fuck me! I hope these certificates were worth it. Good luck Dell Certified Professionals out there! These are pretty much useless now. Glad I avoided getting vendor certs.
http://accessories.us.dell.com/sna/category.aspx?c=us&s=bsd&cs=04&catego...
looks like a good harbinger for gun sales.......................of course a "fired" person would have to wait until their first unemployment check arrives to purchase their brand new, oiled, 30 round clip AK or Bushmaster. have a nice day.
Edit.."Magazine". Please call those Mags or magazines.
Best intentions here. :)
Unless you have a garand.
pods
i darn sure wouldn't turn one down, you offering?
Haha, no way in hell. Never owned nor even fired one. Would love to have though.
pods
me too pods, the stripper clips would be a little weird, but .30-06 semi-auto. and they were pretty accurate for a mass produced war weapon.
This is TRUE! Or, maybe an old SKS?
They're just laid off, they need to conserve what liquidity they do have and be frugal, they should be looking for a Mosin-Nagant, still some well broke-in Soviet models to be had for under $200, and spam cans of ammo can be had.
Jerry's has 03-A3 stripped receiver and bolt for about $115 right now. Very strong action. Yes, bolt action, but if you know a good smith, you can have one made up for arount $600 or so. I buy a few a year and turn them into heavy brush/ forrest rifles usually in 35 whelen.
Wonder how the networks will spin it? Oh wait, they wont mention it because it doesnt fit the narriative.
Is Dell trying to get the head count down under 50 full time employees so they can drop health insurance coverage and still avoid the penalty (or is it a "tax")?
Dude you are only getting 29.5 hours a week from now on.
Shit I live in Round Rock Texas (Dell headquarters), crazy going to effect alot of people over here.
THIS WILL BE A GODSEND TO THE TEXAS ECONOMY, LOOKING BACK AFTER 2-3 YEARS. IT'S THE BEST PLACE IN AMERICA, OUTSIDE OF SILICON VALLEY, SOCAL, AND BOULDER TO START A NEW ENTERPRISE.
Just like they did to us in NC in 2009! Dude! You're getting a sweet Tax break!
http://www.theregister.co.uk/2009/10/08/dell_closing_north_carolina_plan...
Their severance package will be considered a hedonic adjustment to their unemployment.
One can only hope that at least a few of these geeks installed backdoors while they were still workng and know how to get inside Dell's systems and make them go poof.
Better yet, they saw this coming and dropped a Logic bomb on them ;)
logic bomb
n.A computer virus that remains hidden until it is triggered when certain specific conditions are met.
This reminds me of a relative of mine by marriage. She has just retired, but worked a life time for major telephone companies, at her age, she naturally went through the massive layoffs and consolidations in traditional phone service. She was a major HR person, for the last 20 some years, she has been in several of America's biggest phone companies as THE person tasked with taking people into her office and handing them their notice. She has fired so many thousands of people face to face that she has no idea the total numbers. When you think about it, corporate America needs women like her, willing to do the dirty work face to face. I believe her corporate loyalty, and good job of getting angry people out the door in minutes, made her a must have and keep employee. In all her time, she never heard any talk of her job being axed, right to the day she retired, she continued to fire people.
With the changes in computing, and they are BIG, Dell is fast becoming another traditional phone company like business that the world is passing by. They had a great run, but unless the business model changes, then they will sink. I for one, have had several Dells, but when this one goes, I will move into the cloud and hand held devices. The desk top will not be replaced, me and many others! For my small business I should go to the cloud right now, as the desk top connection limits my ability to respond instantly to customer requests. So my Dell is probably gone before summer tourist season hits.