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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.
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The cloud - wow you are a dipshit. The cloud where they have access to all your information.
At least the people are getting a severance package. A pretty good one too.
The problem is Dell expanded too far due to being publicly traded and forced to "grow" their business. The company as it sits can't exist as a private corporation. The product offerings need to be cut in half and refocused.
The main markets for computer products, smart phones and tablets, are too crowded to make a decent profit. Dell needs to focus on niche markets where they can own the sector. Like making a real pen enabled convertible with enough power for the people that want to use them. Build rugged tablets for construction and outdoor applications. Sony is the only major company making a weather resistant tablet, but it still isn't rugged enough for construction duty. Dell should also go back to being 100% direct. There is no point in selling computers to Best Buy in a race to the bottom just for the sake of revenue.
I hope Dell products get better and the company achieves organic growth again so they can start to rehire people of real value.
Really, who gives a fuck. Did you see that Super Bowl last night. Oh! boy! What a game. Wonder who will win it all next year?
That game was a joke.
However, Duke/Cuse was fucking insane Saturday night.
They can't do that... (enter the jobs preservation czar).
The government will tell them how few (if any) people they can lay off at any given time.
>>>>"Shovel Ready" Defined as Jobs
>>>>"Shovel Ready" for Burial Duty
I'd say he should close up shop and return the money to shareholders, but there aren't any anymore :p
Wall Street loves layoffs.
Bullish for Dell. The more layoffs, the more bullish.
Come on and join the ranks of Social Security Disability insurance.
ORACLE - One rich asshole called Larry Ellison
I have a 2004 Dell Dimension 4200 desktop computer. Slide open the side cover and all the parts appear to be from China. This computer works fine even 10 years later, once I replaced the prone to failure memory sticks it came with. There is no way Dell can compete with Lenovo or Samsung or any other low pay computer company. Michael Dell made a big mistake taking his company private if he intended to continue running Dell. But that is not his game plan. Michael Dell will follow IBM's modus operandi and sell Dell Computer to one of his competitors, possibly Asus(tek) or Acer. Then Dell, flush with the money from disposing of his company, will buy a 300 or 400 foot mega-yacht and cruise the world.
Damn you Weather! Damn you all to hell!!
http://www.youtube.com/watch?v=CsbYx6hevoQ
More green shoots?
LOL
Michael Dell's ball bag is hard like saddle leather.
cool we can go buy some houses from the laid off people and rent them back to..... um, somebody with money hmmm maybe rethink this plan
what's that noise? sounds like a waterfall getting closer let's paddle faster
I had a Dell 4300 back in 2004. I hated it. It kept crashing, blue screen once too often. I would've shot it, but I lived in town so I put on Craig's under Free Stuff. Anything in my house with the word Dell on it left my house fifteen minutes later. Nothing with the word Dell on it will ever be allowed in our house again.
Wasn't Dell involved with Soros and a few others in buying Indy Mac Bank? Sroso/Obama/Dem pirates nuked it circa 2008, then bought it with huge tax losses plus govt money. I am pretty sure Dell was in the investment group.
This whole industry will now quickly head for the sh@#ter. It is a toilet of low margins, easily commoditized products and disintermediation by everyone to everyone. That includes mainframes, servers and even smartphones. You techies make peace with your investors, and tech investment lovers cash in cause the end is near.
it's not "bloodbathing" Tyler(s)....
it's "getting really lean and mean" for The Custer's Last Stand directly ahead.
Arrest Michael Dell and redistribute his stolen wealth.
What the hell is a severance package? The only thing a company ever gave me after a layoff was a cardboard box to put my shit in, and a complimentary security escort out the door.
Michael is just getting ready for TPP to get fast tracked into 'law'.
Need more NSA contracts
Good point, DELL needs to be the sole supplier to the NSA for HW, ... trouble is as we know the NSA likes to make their own HW.
That way its 'clean' the peasants get dirty hw, and the praetorians get clean hw.
*
But it would be good, at some POINT in the past, its OBVIOUS that MICHAEL-DELL didn't suck USA/NSA cock, or maybe he failed to pass the AIPAC 'LOYALTY' test, ... nonetheless his fucking is fucked.
This is awesome news. 15,000 more people that can't buy a Dell.
I was laid off from my tech job in lieu of some H1b visa worker. I'd buy a new shiney Dell, but since I now make $7/hr, my money is going to buy food and pay rent in my mother's basement.
So this bodes well for Dell! You thought your revenues sucked now....keeping killing the golden goose, mother fucker.
Ten years ago - wow, the PC /Server is broken, let's fix it.
Today - wow, the PC/ Server is broken, throw it out and reflash it.