Dell prepares staff cuts amid pandemic

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Dell prepares staff cuts amid pandemic

Laptop makers generally speak favorably about their business outlook during the pandemic, complaining primarily about component shortages. Dell is one of those who lack processors to produce laptops in the right quantities, but other businesses are not doing well, so the company will not be able to avoid staff cuts.

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COO Jeff Clarke, according to Bloomberg, told Dell Technologies at the meeting that the company would be forced to downsize to keep costs down. A number of good news was also attached to this statement. First, reductions will not be concentrated in any one division of the company. Secondly, employees are allowed to work from home for as long as necessary – the office can be absent from one to five days a week if such a schedule is agreed with the immediate supervisor. The matter has not yet reached the point of cutting salaries, and Dell will give out $ 400 for those wishing to upgrade their home equipment for remote work.

For the rest of the current fiscal year, Dell is freezing bonus payments and promotions. What percentage of the staff will be cut is not specified, but as of the end of January, Dell employed about 165 thousand people. Optimization of the company’s structure may continue next year when conditions are favorable for the sale of Dell’s stake in VMware. Now, Dell’s debt obligations reach $ 34.1 billion, the bulk of them was formed after the purchase of EMC Corporation in 2016.