Dell is all about to lay off as many as 15,000 employees this week – almost 15 percent of the company’s global workforce of 108,000.
Reports suggest that in the wake of a falling PC market, the PC and server giant is undergoing a massive restructuring operation, which 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”.
As part of the company revamp, founder Michael Dell now wants to move its entire focus towards growing the enterprise IT solutions offerings rather than the PC division.
Dell is going to offer a severance package, which will include two months’ pay along with another week of pay for each year of service, a bonus of 75 percent, health insurance for 18 months in the United States and outplacement services at least in the United States and some outplacement services at least stateside.
A Dell spokesman said that the company “can confirm that a small percentage of Dell’s global team members accepted the company’s offer of a significant severance package associated with a voluntary separation program. We’ve taken steps to optimize our business, streamline operations and improve our efficiency over the past few years. And, like any prudent business, we’ll continue to do so. Meanwhile, we’re hiring in strategic areas of our business, including hardware and software development, engineering and customer coverage worldwide.”
The job cut news has come just in time when Brian Gladden, Dell’s current chief financial officer, has announced his departure from Dell in order to “pursue career interests outside of Dell”. Gladden will be replaced by Thomas Sweet, the Texas-based firm’s chief accounting officer.
The company on January 28 announced a partnership with Cumulus Networks to deliver bare-metal networking devices that will run Cumulus’ Linux operating system.
[Source: The Register]
