Beleaguered Dell asks workers to take unpaid leave in latest effort to slash costs

A memo to all Dell employee from CEO Michael Dell asks workers to consider taking up to five days of unpaid time off to help prevent more layoffs. It’s the beleaguered PC box assembler’s latest effort to squeeze blood from a stone.

The Austin Business Journal reports, “According to spokesman David Frink, the memo from CEO Michael Dell says the new program calls for a temporary companywide hiring freeze, the elimination of contract employees, severance packages to those who depart voluntarily, and a voluntary furlough of one to five days. The memo also states that more layoffs may be necessary if the other elements of the program do not achieve enough cost savings. Frink declined to say how much money the company hopes to save via the program.”

Full article here.

[Thanks to MacDailyNews Reader “CheekyGit” for the heads up.]

Looks like Mikey’s going to have to make due with fewer painted craptop lids. But, what about Enderle’s yes-man, er… “consultant” fees? Hey, maybe Mikey can make it all up in volume? smirk

45 Comments

  1. At least they are showing some kind of compassion for their staff and giving them a choice. Maybe one of them will actually come up with a decent idea to save the company. It for damn sure Mike Dell was tapped with the whole supply chain idea. Skate to where the puck is gonna be and it ain’t net appliances

  2. In all of this, we have to keep in mind that this is a very tough time for the Dell employees and must feel for what they are going through. No matter how much I prefer Apple over Dell, this is a huge loss to all that are working at Dell.

  3. I don’t like Dell PCs but there will be a lot of real people getting hurt. I live in Round Rock TX and have many friends that work at Dell. Dell sells a lot PC but their margins are very thin and their tech support is a very high overhead expense.

  4. @Dave

    If Mikey does take a bonus this year, that will be a very, very bad sign for the company. Sell whatever stock you have left. Take the severance package if you’re an employee. But get out while you can.

  5. Circling the bowl… hope some of the folks working at Dell can find jobs elsewhere.

    And bobchr makes a good point that Dell is indeed handling this better than I’d have given them credit for, all things considered.

  6. @ Passerby & Dave,
    Hopefully, Mr. Dell is ethical enough to not take a bonus when his company is in such turmoil. He reportedly uses a Ubuntu-based laptop as his main computer. Ubuntu is also a philosophy… a way of being.

    According to Desmond Tutu, “A person with Ubuntu is open and available to others, affirming of others, does not feel threatened that others are able and good, for he or she has a proper self-assurance that comes from knowing that he or she belongs in a greater whole and is diminished when others are humiliated or diminished, when others are tortured or oppressed.”

  7. According to Desmond Tutu, “A person with Ubuntu is open and available to others, affirming of others, does not feel threatened that others are able and good, for he or she has a proper self-assurance that comes from knowing that he or she belongs in a greater whole and is diminished when others are humiliated or diminished, when others are tortured or oppressed.”

    Yeah, just like Nature. (You know, the model for all things social in the Western world. The very same place in which a single rule prevails: ONE EATS OR ONE IS EATEN, with absolutely no regard for the greater whole or the needs of the commune.)

    Samuel Butler titled his famous novel “Erewhon” with one purpose in mind: To underscore the fact that paradise exists “Nowhere.” God bless Bishop Tutu, but his words are ephemeral and puerile . . . as is Ubuntu.

  8. Working in the Valley, as I presume a great many of MDN readers do, this is just the tip of the iceberg. All of us, whether in networking, software, hardware, telecom, etc. are starting to sweat, and contractors especially (being one myself). Having been the recipient of several layoff notices, I only wish the best to the employees of Dell, and hope they are able to find work in other areas of the tech industry. No matter what anyone thinks of Dell computers, those employees have families, and I wish only the best for them.

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