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Businesses

Dell Reportedly Laying Off 12,500 Employees (siliconangle.com) 89

"We are getting leaner," said Dell's Bill Scannell and John Byrne in an internal memo to employees on Monday. "We're streamlining layers of management and reprioritizing where we invest." While no official numbers have been confirmed, a source close to the matter told SiliconANGLE that 12,500 layoffs, or about 10% of Dell's worldwide workforce, were planned across the company starting Tuesday. However, that number could be high. "It's unlikely the number is that high because that would typically trigger an SEC filing," said theCUBE Research Chief Analyst Dave Vellante. From the report: Indeed, in February 2023, a 10-K filing with the Securities and Exchange Commission was made for a reduction of about 6,000 employees. The number of new layoffs might become more apparent when Dell files its latest earnings report on Aug. 29, which should show severance and other costs. Dell declined to provide specifics on the layoff. "Through a reorganization of our go-to-market teams and an ongoing series of actions, we are becoming a leaner company," the company said in an email to SiliconANGLE. "We are combining teams and prioritizing where we invest across the company. We continually evolve our business so we're set up to deliver the best innovation, value and service to our customers and partners."

Rumors of layoffs were swirling today on TheLayoff.com website. "Despite whatever person from corporate put in here earlier about this being a 1% layoff, it is in fact larger than that and is hitting services, sales, marketing & engineers," one person said. "Half of my team is gone in marketing and still no coms." Dell has been cutting staff for at least the past year. It laid off a total of 13,000 last year, according to CRN, including the 6,000 in February 2023 and another round in August whose numbers the company didn't specify.
The layoffs follow a 15% reduction announced by Intel last week, affecting over 16,000 workers.
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Dell Reportedly Laying Off 12,500 Employees

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  • If they're not careful, they may die of starvation from all that "getting leaner".

    • by chrish ( 4714 )

      Maybe they should try dropping some of those expensive office buildings instead of trying to force everyone to RTO. I'm willing to bet a lot of those people didn't need hands-on time with things that need to stay in the company building.

    • by Z00L00K ( 682162 )

      When lean enough they are going to be gobbled up by Broadcom.

  • by tekram ( 8023518 ) on Wednesday August 07, 2024 @07:45PM (#64689210)
    Dell is the same company that went private to let Michael Dell get rich, then go public a few years later because it will make Michael richer. This is the same thing with the 12,500 layoffs, because it makes him rich and happy. https://www.pcmag.com/news/bre... [pcmag.com]
    • I am trying to understand your point. Michael Dell has an incentive to do things that make himself rich. Just like everyone else. So...why wouldn't he?

      He never presented Dell as a charity, after all. So, what incentive does he have to do things that would make other people rich, instead of himself?

      I suspect (but I am unsure and may totally be wrong here) that you might be taking the position that rich people are morally corrupt when they do things that make themselves richer. Well, maybe so, but pointi

    • by AmiMoJo ( 196126 ) on Thursday August 08, 2024 @04:05AM (#64689740) Homepage Journal

      I wonder how external events affected this decision.

      Next year Windows 10 is reaching EOL, so there is a good chance that demand for new machines will rise as people are forced to replace them.

      But right now Dell has a massive liability - two generations of Intel CPUs that at best need to be slowed down, and at worst will require the entire computer to be RMA'ed. For desktops it might be worth doing a CPU swap, for laptops they will be a write-off as it won't be worth manufacturing a new motherboard and installing it.

      Maybe that's the root cause. They are expecting a massive hit to their bottom line from warranty replacements as news of Intel's screw up spreads, and the inevitable class action lawsuit over reduced performance.

    • by mjwx ( 966435 )

      Dell is the same company that went private to let Michael Dell get rich, then go public a few years later because it will make Michael richer. This is the same thing with the 12,500 layoffs, because it makes him rich and happy. https://www.pcmag.com/news/bre... [pcmag.com]

      And this is different to other companies... how?

      I'm not really sure anyone goes into business without a goal to make money, well at least anyone who wants to stay in business.

    • Does this mean we should buy shares of DELL, so we can be rich and happy, too?
    • So, companies and people shouldn't try to make money and get rich?

  • It's been at least 15 years since management was just management and not line workers stuck doing managerial work on top of their day jobs. To be honest it's probably been closer to 20 years since I've actually seen a plain old manager.

    Management was initially formed to keep tabs on employees to prevent unionization. When Reagan broke the unions in the '80s there was no longer any need or reason to keep management around in that form. They no longer serves the purpose they were created for so instead yo
  • Don't forget (Score:5, Insightful)

    by RUs1729 ( 10049396 ) on Wednesday August 07, 2024 @07:52PM (#64689234)
    The upper management must get their bonuses for the year.
  • No posts ranting about all of the Return To The Office threats that were made by Dell management actually being a stealth layoff

    What got borked at /. to prevent those posts ?

  • https://slashdot.org/story/24/... [slashdot.org]

    Now the layoffs are out in the open.

  • Dell laptops have been shit for years - bad CPU, horrible GPU (usually Intel integrated), bad disk - everything to save a dime. My work laptop I can buy with a better processor and 256GB more disk for $269 at Microcenter...I work with CAD, where GPU is actually important, but they keep buying Dell, even though we say GP-GPU will increase our productivity and Intel Integrated is horrible. I worked for Compaq when they went through a similar transition and they shot themselves through the foot with a 10 gauge

    • by dknj ( 441802 )

      Laptops are a commodity. Everything you have said applies to every other computer manufacturer. You make no mention of Alienware or their XPS models, which have top of the line CPU, discrete graphics usually of Nvidia variety, and NVME storage. You pay a pretty dime too.

      Your beef is with your company which obviously is not spec'ing out your workstations correctly. Not with dell. Dell probably sells them that laptop for $50/unit with tons of additional software/services. You don't seem to have a good gras

    • by _merlin ( 160982 )

      If you're doing CAD and you use Dell notebooks, you should be getting the Precision Mobile line, which are definitely available with NVIDIA GPUs. The Latitude line used to be available with discrete GPUs as well (I'm still using a Latitude 5591 with an NVIDIA GPU), but they seem to have removed the option there now.

  • by theshowmecanuck ( 703852 ) on Thursday August 08, 2024 @12:32AM (#64689534) Journal
    I don't know all that Dell does these days. Is it just hardware? Do they do any software? Managed services, and if so what kind? Etc.

    Can anyone elucidate?
  • by Anonymous Coward

    Our company has also decided to conduct a round of layoffs. Here's what the email said:

    "In order to maximize collaboration, engagement, and productivity during the coming hard financial times, we are ending our hybrid work policy and returning to a fully in-office culture, effective September 1. All employees must return to a fully in-office working schedule on or before that date. All employees who live more than 50 miles from [redacted] have 90 days to either relocate to within 50 miles of [redacted] or v

    • Why do they care how far away you live, as long as you show up every day. I commuted over 50 miles for years and still showed up every day.

    • Imposing a distance requirement in addition to requiring attendance is an interesting twist.
  • by Thumper_SVX ( 239525 ) on Thursday August 08, 2024 @07:10AM (#64689936) Homepage

    Seriously, why is anyone surprised by any of this?

    Dell merged with EMC in 2016. Right then they already had a nascent plan to cut workforce. They were still hiring but put the brakes on to slow it down mostly because they were still in growth mode in the datacenter mostly with their server business. But even by 2018 it was obvious (and rumoured around the Dell offices) that layoffs were coming especially as hiring had slowed and the server market was already seeing an impact of cloud computing taking over what had once been "safe ground".

    In mid 2019 Dell basically froze hiring but never really said as much publicly. They still had job posts but it was interesting to note that a lot of these job posts didn't seem to have actual reqs on the back end to fill.

    Dell started their planned layoffs in 2020. I know; I was one of them. We all knew it was coming and none of us was surprised. Hell, I was only surprised that I got laid off in August instead of the expected April... I guess the pandemic made them push the layoffs due to optics. They haven't gone a single year without layoffs since.

    And this layoff is just the cull they wanted to do anyway when they announced the RTO mandates last year and REALLY started pushing them this year. Bear in mind Dell had been a remote-work-for-almost-everyone company for 20 years until the EMC merger... EMC had a strong office culture while Dell was all remote workers. Most people still at Dell weren't equipped for the office; they often live FAR from an actual facility. Hell, when I worked for Dell my closest facility was a 5 hour drive or a flight away; I only went there once a quarter for a few days for meetings. The RTO mandate was the sign to most of these people that the cull was coming and a lot of them quit, but a good portion of them "quiet quit" and just refused to RTO.

    This cull of employees is just the cleanup of the RTO mandate... this was the balance of people they had hoped would quit and didn't.

    There are more layoffs to come. Don't be surprised.

  • If a business throws out resources instead of applying them to good use, we're suppose to pat them on the back and tell the CEO "good job buddy!"

  • They can lay off all their tech support, if the support I got is any indication.

Children begin by loving their parents. After a time they judge them. Rarely, if ever, do they forgive them. - Oscar Wilde

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