“Is Dell preparing for a significant round of layoffs? All indicators are signaling yes,” Louise Lee reports for BusinessWeek.

Lee reports, “The struggling PC maker has not uttered the actual words ‘job cuts’ or ‘reduction in workforce.’ Just after he reassumed the CEO post on Jan. 31, founder Michael Dell did say that the company must ‘eliminate redundancies’ as part of its turnaround. ‘We want to streamline how we do things,’ explains Dell spokesman Bob Pearson. ‘We have not said anything about head count.'”

“Dell, however, is reorganizing in a manner that consolidates several company areas, suggesting that pink slips may not be too far behind,” Lee reports. “Given Dell’s troubles, it’s unlikely the company will be able to redeploy workers it finds in redundant positions. In the preliminary results for the most recent fourth quarter ended Feb. 2, operating expenses, which include salaries, crept up to 11.6% of sales, from 9.6% a year ago. Making matters worse, Dell’s sales fell 5% from a year ago…”

Full article here.

[Thanks to MacDailyNews Reader “qka” for the heads up.]
Nice to see BusinessWeek is now correctly using “beleaguered” for Dell.

Give us an S, an I, a D! Give us an A, a G, a T! Give us an M, a B, a T, another T, an S! What’s that stand for?!

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