“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?!
Related articles:
Beleaguered Dell: Shut it down and give the money back to the shareholders – March 02, 2007
Beleaguered Dell’s earnings drop 33% – March 01, 2007
Beleaguered one-trick pony Dell faces unclear future – February 14, 2007
Biting words on Apple come back to haunt Dell – February 10, 2007
Dell faces investor lawsuit over ‘illegal Intel kickbacks’ – February 02, 2007
Michael Dell is no Steve Jobs – February 02, 2007
BusinessWeek: Welcome back, Michael Dell – don’t get too comfortable – February 01, 2007
Rollins out as beleaguered Dell’s CEO, replaced by Michael Dell immediately – January 31, 2007
Total eclipse of Michael Dell goes off as predicted – January 10, 2007
SEC starts formal probe of beleaguered Dell – November 16, 2006
Apple does it again: New Macbook Pros much cheaper than Dell – October 25, 2006
Dell feels the heat from Apple – October 04, 2006
The Motley Fool: ‘Intel to Dell: you guys stink’ – September 28, 2006
Beleaguered Dell’s OS-limited PC sales ‘declining rapidly below expectations’ – analyst – September 21, 2006
Fortune compares Mac vs. Dell: ‘you’ll get more for your money with Apple’ – September 11, 2006
AP: Time to think different, Apple Mac beats Dell on price, software compatibility, and more – August 23, 2006
Dell profit falls almost in half; announces informal SEC probe – August 18, 2006
Dell cannot compete with Apple’s new Mac Pro price or feature set – August 15, 2006
Bear Stearns: Apple’s new Mac Pro, Xserve pricing well below comparable Dell systems – August 09, 2006
Dell warns of earnings miss; shares plunge 15% – July 21, 2006
Survey shows big jump in consumer interest in buying Apple Mac; Dell takes steep slide – July 06, 2006
Dell warns 1Q earnings will miss mark; shares tumble – May 08, 2006
Apple passes Dell in market value – May 02, 2006
InformationWeek: Apple Mac run Mac OS X, Windows, and Linux; Dell and HP should be concerned – May 01, 2006
Dude, you got a Dell? What are you, stupid? Only Apple Macs run both Mac OS X and Windows! – April 05, 2006
Apple Mac is #1 in European education market, pushes Dell down into second place – February 03, 2006
Steve Jobs emails Apple team: Michael Dell not the best prognosticator, Apple worth more than Dell – January 16, 2006
Fortune: Michael Dell reiterates he’d love to sell Apple’s Mac OS X if only Jobs would license – January 22, 2007
PC box assemblers like Dell and others wish Apple would license Mac OS X – August 31, 2006
Michael Dell say’s he’d be happy to sell Apple’s Mac OS X if Steve Jobs decides to license – June 16, 2005
Fortune: PC makers realize Mac OS X is superior to Windows, they’re wooing Steve Jobs for licenses – May 26, 2005
Shut it down and give the money back to the stock holders!
Ain’t karma a bitch?
van … gloating is so … Microsoft, y’know?
“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…”
DUH! That’s one of the things that happen when sales go down but the work force (etc) either stays the same or grows slightly. We’re talking sophomore year in B-shool, here.
Hey … when did I take on the persona of “Obvious Man”?
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DLMeyer – the Voice of G.L.Horton’s Stage Page
MDN, you all are some great cheerleaders.
All PC makers are being whacked by the underwhelming Vista Microsoft slogged onto them.
There is no reason to upgrade from XP to Vista.
People will buy Vista when they are forced to get a new Windows computer.
In the meantime Apple and, even more so, Linux is making big headways into the Microsoft territory.
Ballmer should be forced into retirement. He is killing MIcrosoft.
dell death knell no. ?
Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell…
I just can’t get enough a’ that. =)
-c
Ballmer should, nay must, remain firmly at the helm to ensure Microsoft is forcefully driven into the ground in a spectacular flameout.
It’s the only way to be sure.
@The Boss
Keep Steve Ballmer and Michael Dell right where they are…
Termite,
You’re right. If Microsoft doesn’t implode, and it’s likely they will if Ballmer remains, then who ever replaces him might manage to maintain their monopoly. That is unacceptable.
Ballmer must stay! Ballmer must stay! Ballmer must stay! Ballmer must stay! Ballmer must stay! Ballmer must stay! Ballmer must stay! Ballmer must stay! Ballmer must stay! Ballmer must stay! Ballmer must stay! Ballmer must stay! Ballmer must stay! Ballmer must stay! Ballmer must stay! Ballmer must stay! Ballmer must stay! Ballmer must stay! Ballmer must stay!
@MDN:
You are too funny…really:-)
My first girlfriend had a pink slip.
But that was over forty years ago.
Sigh!
What can Michael Dell do?
Continue to sell “me too” hardware with an unsecured “me too” OS?
Does he call Ballmer and push for that first service pack for Vista to be released to generate some interest in new machines?
Put those Alienware flame decals on every PC and laptop?
Ask Ballmer to create a lower resource-hog version of Vista to put on the obsolete-two-years-ago $399 machines?
Adding a Linux distro into the mix will cost too much to support, especially for an organization whose operating basis is so cost sensitive.
I think he’s hosed.
With partners like Microsoft, who needs enemies?
ChrissyOne:
Is that twenty thousand beleagues under the PC?
Is that twenty thousand beleagues under the PC?
Thanks! Now I have to clean my screen of the drink an showered it with when reading that!
Screen’s clean now. Hopefully my writing will improve too! Sorry about that! One of these days I will learn to prrofreed what I write.
Zune Tang!
Zune Tang!
Where are you?
Where are you?
Usually MDN’s summaries and editorial takes are enough for me. But this time I just had to click the link to see ‘Beleagured’ in the original article.
I predict there will be many more of the same kinds of Dell articles from here on, until Michael finally does…
Well, first of all, let’s feel sorry for those who will loose their jobs due to the unimaginative way Dell’s business has been run the past eight to ten years. Don’t think for a minute that those responsible for Dell’s butt-ugly design will suffer.
DUDE, YOU’RE GETTING A PINK SLIP!!
The lipstick is coming off of the pig. When, oh when, will Wall Street notice — or at least pretend to be shocked, just shocked.
I recently had to spec a PeeSee for use on a piece of equipment. Dell was underselling other vendors by over 20%.
They must be in emergency mode. If I were a stockholder I would be taking legal action to insure that these irresponsible decisions do not cost me my piece of company..when Dell has to close the doors and give me my money back.
Just my $0.02
Dell’s turnaround is simple: reintroduce the DJ Ditty with Janus DRM (is it still Janus anymore or did Microsoft recycle & rename yet another failure?) and tie it into one of those subscription-based online music services.
Problem solved.
“Dell’s turnaround is simple: reintroduce the DJ Ditty with Janus DRM . . . and tie it into one of those subscription-based online music services.”
You forgot to add that Rob Glaser should take over as CEO.
Dell is in transition to upgrading all employees to Vista Ultimate Fighting Edition. Once service packs, virus scans and patches and updated drivers are installed, they can go back to innovating the personal and commercial PC industries. And those hospital gowns don’t tie in the back real well.
As the old story goes…numerous hourly paid employees will lose their jobs and numbers will look better in the short term so VP and up will get bonuses…again.
Dell have some balls and hatchet every executive that has a dept too fat and promote from within. All this “good ol boy” business practice is brining America (and Dell) to it’s knees.