Feeds

Dell pressures workers into leave without pay

Bon voyage!...or else

Boost IT visibility and business value

Nearly all employees at Dell are being asked to take a week of unpaid leave. If they don't obey, another round of layoffs will begin.

Workers at the Round Rock-based PC vendor recently got an email memo from founder and CEO Michael Dell outlining the company's latest efforts to cut costs this quarter.

Part of Dell's scheme asks workers to take up to five days off without pay sometime within the next three months. The company also instituted a global hiring freeze, is offering voluntary severance packages, cutting travel budgets, and sacking temporary and contract employees.

"We're taking action in this fourth quarter to reduce costs and improve Dell's long term competitiveness in a time of economic uncertainty," said Dell spokesman David Frink.

The unpaid leave will be strictly voluntary, Dell's memo stated, but it also warned the company may resort to layoffs if this round of cutbacks doesn't reduce operating expenses as hoped. The company didn't say how many employees would need to take leave time to consider the program a success.

The three months time frame ends in January, not coincidently the same time as the close of Dell's fourth quarter 2009. Like a Jenny Craig reject, Dell has been desperately trying to make reductions, only to feel the bitter poison of defeat each time it steps on the scale.

Dell's motto now is to save $3bn in annual costs by 2010 by means of layoffs, shifting to lower cost producers, layoffs, miscellaneous cost-cutting measures, and layoffs. Also, if there's time afterward: layoffs. Dell has already axed at least 8,800 jobs since last year.

Of course, just like PC market share, Dell plays second fiddle to Hewlett-Packard in mass sacking. HP announced in September it would lay off 24,600 jobs worldwide as it merges the massive IT services organization EDS with its own existing massive IT service organization. ®

Build a business case: developing custom apps

More from The Register

next story
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.