Monday, February 3, 2014

Dell in decline: Major layoffs as company continues downward trajectory



Fifteen-thousand layoffs expected as Dell struggles with profitability.





Dell is expected to shed 15,000 jobs around the world — with a large number coming from its headquarters — as the PC maker struggles with profitability as a private company.

According to sources that spoke with The Register, no department is being spared the, as one source put it, “bloodbath”. Reportedly every conference room in Dell’s Round Rock, Texas headquarters has been booked up with HR staff giving employees the bad news. Once source said that after the first round of 15,000 layoffs is complete, Dell might downsize staff by another 15 percent.

Reportedly laid off staff will get a severance package of two months’ pay plus an extra week for each year of service, a bonus at 75 percent, health insurance for 18 months in the U.S.

Dell has been hit particularly hard with the great PC decline of the past four years. The once stoic manufacturer of PCs and laptops has seen its business crumble, and its tablet devices have been largely relegated to the ash heap of consumer-electronics history because of their clunky UIs and boring hardware.

For its part Dell has denied the layoffs (as a private company its disclosure obligations are much less) and said it plans to hire in “strategic areas of the business” in the near future.

Source: The Register



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