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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.
It is entirely possible that after a huge company takes over another huge company, there might be some duplicated job functions.
3,000 employees out of 140,000 worldwide, a 2% reduction, is not really a crazy number for a company that was just bought out.
Except that's not how it will work. All of the people you stated will be let go, certainly will. The line workers may get a little more money, but the CEO and such will get most of it. Then new line workers will be hired for half of what the current ones are paid, with less benefits. Then anyone close to retirement age will be offered early retirement and replaced with more lower wage people. Any one else left will be given some sort of payoff to leave, or outright fired and in the end the line will be staffed with people who make a third to half of what the original workers did. The C level folks will get big bonuses. Then the customers will realize the quality of their products has gotten worse and profits will slide a little. And a new CEO will be brought in to cut costs and they will go on a steady decline and eventually offshore to China. Sadly, this seems to be the way of business these days.
As an EMC employee (make that Dell Technologies now), I find that absolutely hilarious!
I can report that there is absolutely no worry about jobs in my engineering division. Dell wouldn't have bought us if they wanted to scale back the product I'm working on.
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'.
I've personally had a job where after a while I wasn't having much to do. I even thought at the time that if I were them, I'd lay me off. And then a bad quarter came, and they shed about 10% of the workforce, and I wasn't at all surprised with what happened next.
And to be honest, I saw a lot of people let go that we probably didn't really need. The purpose of a business isn't too create work and give people paychecks, so I honestly have no complaints about layoffs when I hear about them.
Besides, getting laid off turned out to be highly profitable since I got a decent severance and within two months got hired at a new place with 60% better pay, better benefits, and my own office instead of a cubicle. So I'm actually rather glad that I was laid off, because I wouldn't have looked for greener pastures otherwise, and I wouldn't have gotten two months of paid vacation.
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.
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.
Whoa! Dude, where exactly did this happen anywhere.
You do not understand how it works.
The most wealthy people need more money, because if they don't get more money, they won't be able to create jobs.
The poorer people need less money, because giving them more money just makes them lazy. It sounds like a contradiction, but you can look that up in the Bible.
The shepherds did so well protecting the flock that the sheep no longer believed that wolves existed.