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Dell To Cut At Least 2,000 Jobs After EMC Acquisition (bloomberg.com)
As Dell processes the acquisition of EMC Corp, its largest buyout ever, it plans to cut about 2,000 to 3,000 jobs, people familiar with the matter told Bloomberg. The layoffs are expected to happen later this year, and regions such as the United States will be impacted the most by it. From the report:The reductions are planned for later this year and will be mostly in the U.S. and in areas such as supply chain and general and administrative positions, as well as some marketing jobs, said the people. Dell is looking for cost savings of about $1.7 billion in the first 18 months after the transaction but is largely focused on using the deal to boost sales by several times that amount, the people added. The new company has 140,000 employees. "As is common with deals of this size, there will be some overlaps we will need to manage and where some employee reduction will occur. We will do everything possible to minimize the impact on jobs," Dave Farmer, spokesman for Dell, wrote in an e-mail. "We expect revenue gains will outweigh any cost savings, and revenue growth drives employment growth."
Fire more people to make more profit to create more jobs!
Now where's my big fat MBA bonus?
For an acquisition this big, I would've expect ten's of thousands gone, so keeping it so low is actually surprising. I can only posit this being round one.
Bye!
Seriously, who is surprised by this including the employees.
It sounds like a completely sensible cutting of redundant HR/administrative/marketing/etc... people. It doesn't sound like Dell is cutting R&D or engineering or production or even much in sales. If I'm supposed to be mad at Dell for this it's not working.
I read the internet for the articles.
...preferred to describe said cuts as deduplication.
Fire them ALL and watch our profits skyrocket!!
Obviously the purpose of the acquisition is not "create more jobs". The *effect* is fewer, higher-paying jobs in the combined company, which should in turn encourage either more or higher-paying jobs outside the company.
Consider you have 10 people assembling computers, and the other tasks that actually produce the product.
The parts are worth $10 million, the assembled computers are worth $12 million.
Therefore, the work done by these people is worth $2 million. The "line worker" value is $2 million, that part doesn't change.
Now consider if you have 2 HR people, 2 IT people, and 2 manager supporting the line workers. They have to get paid out of the $2 million value produced. So a total of 16 people get paid from $2 million. That's $125K each, on average.
BY combining companies and getting rid of some of the duplicate HR people, IT people, and managers, we have this scenario:
Still 10 line workers, still producing $2 million of value.
Now 1 HR person, 1 IT person, and 1 manager. A total of 13 people paid from the $2 million of value. That's $154K each, on average.
So reducing the duplicated workers means that salaries of the remaining workers can increase by $29K each. The company can have fewer, higher paid employees.
These employees each have $29K more to spend (a total of $377K). Maybe spend it on getting their house painted, their car fixed up, and going to a concert. That finances more jobs for house painters, auto body, and concert techs.
So net result is that their is money available for jobs within the company to get higher salaries, and some jobs move to other companies.
This happened to me at Medtronic; the company bought another company and had to absorb their workforce. We were over staffed so they culled the payroll by laying me off for 'poor performance'.
That's fun to talk about, and then there are the actual numbers.
Michael Dell IS well paid as the CEO of Dell. Almost in million salary and in a *good* year almost twelve million in stocks and other compensation. When the company does well, he's paid almost $13 million.
Meanwhile, the total payroll cost for Dell is around $2.1 BILLION. 0.06% of that goes to the CEO, 99.94% goes to the other workers.
Historically, revenue growth gets pocketed by the management, and layoffs continue any time the numbers look bad.
They're not even trying to lie anymore....
I just closed a 1.8MM deal right out from under those smug EMC ass fuckers. HPE can afford to buy them out of business. With the interest DELL is paying, that will take about 6 months.
Sayonara, you dumb saps.
The full picture will be known 1-2 years from now. Moving all the accounting, manufacturing, distribution, etc will take time. Make no mistake about it. Cuts are coming for many departments as the need for higher profits becomes more important.
For all the H1-B visa workers they'll hire.