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Dell Reduces Workforce as Part of Broader Cost Cuts (reuters.com) 55

Dell reduced its workforcereduced its workforce as part of a broader initiative to cut costs that included limiting external hiring and employee reorganizations, it said in a filing on Monday. From a report: As of Feb. 2, 2024, it had nearly 120,000 employees, down from about 126,000 a year earlier. The layoffs come after sluggish demand for its personal computers for nearly two years partly contributed to a 11% drop in revenue in fourth-quarter earnings posted last month. Dell expects net revenue in its client solutions group (CSG) - home to PCs - to grow for the entire year, it said on Monday. The segment's revenue had fallen 12% in the fourth quarter.
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Dell Reduces Workforce as Part of Broader Cost Cuts

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  • TFA claims it's the "client solutions group" which is related to PC sales which is going to be stung the hardest by the layoffs. Well, perhaps start making some hardware people could like or get excited about besides the bland crap that keeps coming out. Even Alienware got boring after being bought by Dell.
    • Computers became a commodity many years ago. Even for gaming.
    • by hdyoung ( 5182939 ) on Tuesday March 26, 2024 @12:16PM (#64346275)
      There’s probably nothing they can do except manage the decline towards full commoditization. Expecting Dell to grow would be like expecting a cable company to grow it’s number of subscribers. PCs are basically toasters at this point. With the exception of the small top-end gaming enthusiast crowd and a few other tiny niches, but those groups don’y buy Dell.
    • by ShanghaiBill ( 739463 ) on Tuesday March 26, 2024 @12:17PM (#64346279)

      Because services are way more profitable than hardware.

      The profit margin on desktop PCs is 3 to 6%.

      The margin on technical services and consulting is 50 to 60%.

      • The profit margin on desktop PCs is 3 to 6%.
        The margin on technical services and consulting is 50 to 60%.

        And twice that with half the staff! :-)

        (Can't do that with half the hardware.)

      • In your head, plenty of 3rd parties that provide consulting on Dell and Dell-EMC gear including Isilon, ECS etc. The fact is that Dell often stops supporting their own gear before the 3rd parties because they want to sell the hardware. The hardware + licensing has a 50% markup, the service and support is simply not profitable partially because most of it is done through third parties and contractors in India, causing delays due to bad communication and those Wipro people in India LOVE to run up the bill, ev

    • by TWX ( 665546 )

      What, to you, makes a PC exciting?

      Last time I found computer hardware exciting I was buying surplus-before-their-time high-end dual Xeon workstations from the local college surplus when school programs were closed down prematurely or unexpectedly and the equipment sent for disposal. That was the better part of fifteen years ago now.

      I'm using a seven year old laptop at home and it's still more computer than I actually need. What I do need are physical page-up and page-down keys, SD-card readers, and copiou

      • What, to you, makes a PC exciting?

        Features which reflect experience using the product. For example, it's close to impossible to get a laptop that has a pointing device other than a trackpad. This is despite the fact that many users absolutely hate them and they cause usability problems (palm motion / frubbed clicks). It would be nice to have more ports even on smaller devices, as you point out. I also didn't say it was cool to make everything a dongle-on-the-end-of-a-cable. Just because USB and Thunderbolt can connect external devices at hi

      • by chrish ( 4714 )

        Framework's laptops are (IMHO, obviously) pretty exciting. Apple's ARM laptops would be more exciting if they were somewhat cheaper and/or Apple didn't seem hell-bent on making all of their software worse with every release. Or if I could run Linux on them... keeping an eye on Asahi.

        Desktops haven't been exciting since I was building my own from parts back in the early 2000s (IMHO, YMMV, etc.).

    • Well, perhaps start making some hardware people could like or get excited about besides the bland crap that keeps coming out. Even Alienware got boring after being bought by Dell.

      Given that the one big "exciting" thing that all the PC makers are touting these days is adding some kind of AI chip, I'll stick with cheap and boring.

      • Yikes. Gotta agree. Hard pass. Nvidia, you can have all the stream units in the 3D GPU back, if that's what you're gonna use them for. Ugh, Puh, Bleh.
    • by msk ( 6205 )

      Alienware is "exciting" for me, because of continued AMD GPU driver instability. . . .

      And here I thought buying AMD versus Intel+Nvidia would be better.

      And maybe it would be, if I were running Linux on this thing.

  • I don't understand why their products have been going downhill for years now. Reminds me of HP.

    It seems that once you get locked into corporate and government procurement contracts, you just give up on quality.

    I've had two Dell laptops forced on me over the last five or six years, and they both suck. Poor battery life, they get hot, only sometimes wake up from sleep, and general clunkiness. My experience with Macbooks and Thinkpads has been much better, but my workplace has a Dell contract...

    • That sleep problem is a real bear sometimes. Brand new laptop goes to sleep, won't wake up, requires unscrewing the bottom panel and removing the cable from the battery. WTF?

    • by Anonymous Coward

      > It seems that once you get locked into corporate and government procurement contracts, you just give up on quality.

      RFP and RFQ are like 60-80% weighted on price. I don't think quality is even a metric in the weighting.

  • The number of employed is raised. Orwellian math in action.
  • by ctilsie242 ( 4841247 ) on Tuesday March 26, 2024 @12:39PM (#64346311)

    A hardware company is going to have razor thin margins. Yes, it is nice to have something that can run twice as many VMs for less power, and incremental improvements, but Dell needs to start getting out there and figuring out the market, and perhaps tune EMC for storage solutions that are affordable, as well as other hardware items which would be useful. For example, some new SAN/NAS innovation, a MinIO cluster so one can have on-prem S3 object locking, a backup program that is on par with Veeam, Nakivo, or Commvault (Networker is something to kick to the curb, as it won't deduplicate unless you go for a crazy expensive Data Domain appliance).

    Software-wise, perhaps support for Proxmox and XCP-ng, because they don't own VMWare anymore, so might as well support other virtualization platforms.

    Of course, some R&D into ARM or RISC-V servers can't hurt, just because some businesses want hardware-level boundaries, so having high density ARM-based servers in the server room in something like a HP Moonshot like configuration would be useful to ensure Spectre/Meltdown type exploits can't jump out of a hypervisor, because the boundaries are at the server level, not just a hypervisor.

    Throw in some SDN like NSX, and that can make some solid money. Focus on bang for buck and ease of security.

  • Shut down the company and give the money back to the shareholders.

  • I buy a fair number of Dell computers. I can always find my own best deal without talking to a Dell rep. When I've interacted with a Dell rep, a rep that tells me they can help me out with discounts, the rep provides a quote for more than what I asked for. I show them a configuration and price, they take that, bump up the Dell support to the max and send it back. WTF? Adding maximum insurance is not reducing my costs and is not helpful at all.

    So, Dell, feel free to fire all of your useless Sales people, o

  • by crow ( 16139 ) on Tuesday March 26, 2024 @02:15PM (#64346533) Homepage Journal

    The article cites Feb 2nd, which happened to be my last day when Dell laid me off. I was in the storage division (formerly EMC), and a number of people were let go. Dell typically does some layoffs every year, but this was more than usual.

    • Good luck on the hunt for a new job. It may suck, especially if it hits without warning, but it's perhaps also an opportunity to find something new and more fulfilling. Considering your low ID you may have an age problem, but you'll have the benefit of more experience. All the best.
      • by crow ( 16139 )

        Thanks for the kind words.

        Yes, it's hard to find postings for jobs that match my experience level, so I'm also applying for things with lower requirements. I've had several interviews and a bunch of phone screens, including one interview today that went really well.

        I can't comment on what Dell does for employees that it lays off, but I will say that between whatever they may or may not do and my investments, I'm not in any immediate trouble. That's not going to be the case for more junior people.

        • You're welcome - I'm not the youngest myself, got laid off 12 years ago and it was okay, actually came out brilliantly eventually, but it's just not how things go if you get to choose... It's really great that you're not desperate, that means that you'll be able to look before you leap, so to say. And I'm not the feely type, but I remember words of encouragement did make me feel better and look further, so there.
  • https://it.slashdot.org/story/... [slashdot.org]

    Apparently that wasn't effective enough.

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