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    Dell asks employees to take unpaid leave

    Discussion in 'Dell' started by aja58, Nov 5, 2008.

  1. aja58

    aja58 Notebook Consultant

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    Perhaps the reason for late launches is lack of funds??

    From Reuters:

    Dell has asked employees to consider taking up to five days of unpaid holiday as it struggles to cut costs in the face of weak global demand.
    The number two computer maker, which is near the end of a program of 8,900 job cuts, is also offering voluntary redundancy and has instituted a global hiring freeze.

    Chief Executive Michael Dell announced the moves in an email to employees. He said he expects further consolidation in the technology industry, and encouraged companies to ride out financial turbulence by focusing on hard returns, rethinking businesses and investing.

    "Being stunned into inaction is exactly the wrong thing to do right now," he told a conference in San Francisco, adding that the company is investing in cloud computing to deliver services over the web.

    At the same time, Dell aims to cut operating expenses in its fourth quarter, said company spokesman Jess Blackburn. "The intent is to better position Dell for long-term competitiveness," said Blackburn.

    "We are asking employees on a voluntary basis to consider taking off (up to) five days... as unpaid time off as a flexible way to reduce costs for the company." Employees are being asked to take the time off in the next three months.

    Weak PC demand

    Dell has seen soft global demand for personal computers because of the economic downturn. The company reported a steep dip in second-quarter profit in August and said it would sharpen its focus on increasing market share in emerging markets such as India.

    The Texas-based company said in August it had cut 8,500 jobs out of a planned 8,900 headcount reduction to adjust its business for sluggish global demand.

    Dell announced earlier this year it plans to reach annual savings of $3 billion in three years.

    Speaking at Salesforce.com's developers conference in San Francisco, Michael Dell argued that the future of the technology industry is in cloud computing, rather than fixed on local computer hardware.

    Dell said he expects 80% of Fortune 1000 companies to be using cloud services within the next few years.

    He said Dell is creating a cloud of its own around IT services, and he predicted the company's efforts will ultimately help bring IT service costs down.`

    Reuters
     
  2. atbnet

    atbnet Notebook Prophet

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    While taking days off sucks, it is only 2% of the total work year. I think retaining employees and asking them to reduce their work time by 2% is better than laying off 2% of the workforce.
     
  3. TemjinZero

    TemjinZero Notebook Evangelist

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    ...maybe a sign Dell needs to get its rear in gear, up the quality of its product beyond its competitors, and do something drastic to reclaim the market share they lost by being last to the market with Centrino 2 units?

    Better Quality Product = less money wasted when people with warranties get stuff fixed, because it needs fixing less often.

    Cuts in premiums charged for their products, to get customers back on their side?

    Who knows.
     
  4. mick4394

    mick4394 Notebook Evangelist

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    Maybe they could cut costs by redirecting all of those new computers that sit in the refurb store to all of us who wait weeks for our computers to get built.
     
  5. millermagic

    millermagic Rockin the pinktop

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    But then I cant buy the brand new machines at 1/2 the price ...
     
  6. redrazor11

    redrazor11 Formerly waterwizard11

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    wait, who's number 1? Hp?
     
  7. terrain

    terrain Notebook Evangelist

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    30 percent is the norm -- but sure when the coupons are GOOD its possible.
     
  8. mgh_a1

    mgh_a1 Notebook Evangelist

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    Sounds like another round of layoffs is in the future. Also sounds like "cloud" computing will be another way to reduce jobs or wages. Welcome to the world we live in right?

    Circuit city is closing like, 150 stores right before the holiday season, and just today I drove by one with a sign up that said "now hiring for holiday season". Typical BS for the average workers. Get laid off, then maybe take a pay cut and work as a 'temp'.

    My final gripe is that all of this good news was sent via email. They may be a global company, but that is as spineless as Radioshack. They did basically the same thing as some of you may recall. Only they were shutting up shop for good pretty much.
     
  9. booboo12

    booboo12 Notebook Prophet

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    Agree, while it may be "efficient" from a business standpoint, it isn't really in good taste for treating your employees.
     
  10. I♥RAM

    I♥RAM Notebook Deity

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    This is easier said than done. If one of the Dell execs stand up during a meeting and say "Hey guys! I got it! Let's just make better quality products!", I'm sure the rest of the room would be looking at him like a he's a nutjob. It takes time AND money to drastically improve quality, and at times like this I doubt a bunch of businessmen will -not- be thinking the way customers think, unfortunately.
     
  11. Cin'

    Cin' Anathema

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    Hmmmmm...Nope, I wouldn't like this... :( Unpaid leave?? In this economy as almost every working person is potentially struggling to *just get by*??? Peep's with children, health issues, bills, etc...

    Why don't the Dell *Upper Exec's / Board Members* give up some *benies* that they have? Why not they take *Unpaid Leave* along with their employees. :confused:

    This is just, my own opinion.. :)

    Cin ;) :)
     
  12. mgh_a1

    mgh_a1 Notebook Evangelist

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    Shhh . . . quiet! They'll call you a socialist!
     
  13. mgh_a1

    mgh_a1 Notebook Evangelist

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    P.S. ALL of those activities boost the stock price. Wonder how those stock options are looking?
     
  14. yasdaz

    yasdaz Notebook Evangelist

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    I agree, it is only fair that executives also take the voluntary unpaid leave too. I do think that it is better than loosing your job but of course it makes it even harder if you are struggling with bills. I wish the company well but it does need to look at improving products. After all, it's flagship line, XPS, has not been updated to Centrino 2 and it's competitors have done that for their lines. I would certainly not be looking at Dell now with the centrino 2 options out there at reasonable prices.
     
  15. Cin'

    Cin' Anathema

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    HA!....shhh..LOL...But, it only seem's fair.. :)

    I have some of the same feelings! ;)

    They can still promote products, and cut back on other areas w/out hitting the heart of their company hard being *their emmployees* ;)


    Cin ;) :)
     
  16. TemjinZero

    TemjinZero Notebook Evangelist

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    You want to know the fastest way to save millions?

    Simple. Have all the top execs, Micheal Dell included, simply not take their bonuses. That should save a few billion dollars alone.
     
  17. mgh_a1

    mgh_a1 Notebook Evangelist

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    A lot of top execs make their bick bucks via stock options. Their salaries are usually in the hundreds of thousands, sometimes millions, but they pay less tax on stock options. The stock option is also why "unpaid" leave wouldn't really make a difference. That money is going to be there come rain or shine!

    What will be really interesting is if Dell uses the cost savings they generate from this horrible rip off for workers in order to repurchase their own stock. They have done that in the past. That would mean a HUGE payday for the top management and a BIG one shoved up the you know where for workers. Making those sacrifices for nothing more than a stupid stock price gain.
     
  18. Bloodroses

    Bloodroses Notebook Evangelist

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    There seems to be a pattern to this strategy. I know a few people who are suffering because of this strategy (their companies won't be named). If they open their mouths they get a hatchet job. People are being fired for mind numblingly innane infractions. Meanwhile the execs are raking in huge profits.

    The city of philadelphia is doing the exact same thing.
     
  19. mgh_a1

    mgh_a1 Notebook Evangelist

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    You are definitely right that there is a pattern to all this! It's all about cutting back, laying off, "voluntary unpaid vacation" (which could quickly be made INVOLUNTARY and permanant) ect ect. Then its bringing in temp workers that work 35 hours a week with no benefits at a smaller wage. Then its decying taxes and moving overseas. Meanwhile, I can't afford a new computer and a CEO makes 80 million after the company posts record losses / sales declines.

    God save the king! How can we protect him from the wrath of the shareholders? :rolleyes:
     
  20. BatBoy

    BatBoy Notebook Nobel Laureate

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    Just a thought, I tend to check Dell's driver/software updates on a near daily basis. This includes all releases within the last 7 days. As of today, the last release was 10/29. This is very unusual as Dell has been releasing various updates almost daily for as long as I can recall.

    Perhaps its just a coincidence or maybe its something more...
     
  21. ascariss

    ascariss Notebook Deity

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    this was one of the reasons why I did not opt for dell, they were late to the centrino 2 party, that plus i am not a fan of their designs :p.

    When times are though, people will cut back on luxury goods, be that cars, tvs, laptops or pcs.
     
  22. yellowlt4

    yellowlt4 Notebook Consultant

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    Except that I know of at least 4-5 updates that Dell has posted since 10/29.

    There is nothing new here, this is business as usual. Dell has done this at least once in the past. Its a common practice in corporate america (good or bad).
     
  23. PvD

    PvD Notebook Consultant

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    They are transferring all of their service to the Philippines, a lot cheaper for Dell, I heard that with 5 bucks they can pay 5 employees an hour.
     
  24. yomamasfavourite

    yomamasfavourite Notebook Evangelist

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    Exactly, Dells got so big that its no longer about building computers, its about management and profit for the ceo, directors and shareholders.
     
  25. cybersun

    cybersun Notebook Enthusiast

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    still waiting the XPS serial......
     
  26. Forte

    Forte NBR's Supreme Angel

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    You can kinda know something is wrong when every other company has jumped on the bandwagon of releasing Montevina based notebooks and multiple models at that.

    Now if you take a look at Samsung's new notebook, it looks strikingly similar to the new Dell Studio XPS supposedly will be announced in November. Dell really needs to get some innovation going!
     
  27. Cin'

    Cin' Anathema

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    I think it's still about computers with Dell! But they need to concentrate on the issues at hand vs. fattening management/directors/shareholders wallets! :D

    They need to *realign* a great amount of things...take some cuts where they need be (at the top, that's how I feel) And, start focusing on the *product* again, getting it released in a quicker amount of time! Also, they need to really focus on the *customer* ~ the service they provide to us all! :D


    Cin ;) :)
     
  28. mgh_a1

    mgh_a1 Notebook Evangelist

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    They can stop repurchasing their own stock for one thing, and put the money where it belongs: In development!
     
  29. jet757f

    jet757f Notebook Evangelist

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    This says a lot for Dell and its management. Also the fact that they are closing all of the factories in the US and transferring all the work to Asia.
    ANd now they want employees to work for free????
     
  30. mgh_a1

    mgh_a1 Notebook Evangelist

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    I know, doesn't it make you sick. But its not work for free, its basically "dont come in for a week."
     
  31. jet757f

    jet757f Notebook Evangelist

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    Ok unpaid vacation that most people get paid for.

    With all of their computers being built in Asia they will become just like the rest of the computer manufacturers and lose the special identity they had of one of the few computers still made in the United States.
     
  32. atbnet

    atbnet Notebook Prophet

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    Would you rather take 5 days off over a few months or lose your job? Not all companies give their employees this choice.
     
  33. Cin'

    Cin' Anathema

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    It's too bad...there seems to be no respect from the *higher ups* for their employees. The employees that are already struggling in today's economy, I'm sure..And, the employees that are probably the *bread and butter* of the company. :(



    Cin. ;) :)
     
  34. jet757f

    jet757f Notebook Evangelist

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    The point is I dont have a lot of respect for management that would ask employees to do this.

    Dell is already laying off US employees and moving the work to Asia. So the employees take 5 days off without pay and then still get laid off?
     
  35. atbnet

    atbnet Notebook Prophet

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    Where did it say anything like that? Do you not see what is happening right now in the economy, a lot of people are getting laid off. I think they would much rather take the alternative which would be a few days unpaid.
     
  36. mgh_a1

    mgh_a1 Notebook Evangelist

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    The thing to watch for is whether or not this actually prevents a layoff in the future. Speaking to the history of the US economy, making concessions has generally never prevented the loss of jobs, it has only delayed it.

    There is nothing in that news bit however, that directly stated that you have to take the time off or lose your job. They are looking for "volunteers". That's why it has me so suspicious. Circuit City went bankrupt the other day but I still saw a sign up at one asking for "seasonal help". Evidently, they are going to try to get through Christmas, but what do you think happens after that?
     
  37. yomamasfavourite

    yomamasfavourite Notebook Evangelist

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    They didn't go bankrupt, well not in the typical sense, where they've run out of money and they board up the shop entrances. They filed for a bankruptcy section that allows them to keep trading, whilst holding off on paying creditors for a little bit longer. It doesn't mean they are shutting up shop.
     
  38. mgh_a1

    mgh_a1 Notebook Evangelist

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    Ok fine, "structural bankruptcy". I didn't say anything about them being closed. Anyway chapter 11 is common in this country, and yes it means that it is not an immediate court case followed by liquidation (that's chapter 7). It means that you get another leash on life (albeit conditional). But the 1.1 Billion line of credit they have taken from Bank of America would put their asset to debt ratio at roughly 100%. That means that if they have a lousy season, it it most likely over for them as their creditors are going to want their money back. They have already closed something like 150 stores and thus laid off a lot of people. They will shrink and contract some more, but bankruptcy is bankruptcy. It will be interesting to see what plays out over the next several months.
     
  39. atbnet

    atbnet Notebook Prophet

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    I think most retail stores hire seasonal help because the demand during that time is much higher it would cost too much to keep them employed permantently. I don't see anything suspicious about this. Micro Center had a sign up the last time I was there for seasonal help and they are doing fine.
     
  40. mgh_a1

    mgh_a1 Notebook Evangelist

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    I wasn't trying to insinuate that there is anything "suspicious" about Circuit City's seasonal help . . . sorry bout' that. I took it as a sign that they were not in fact closing up shop and boarding the windows. I can see how you might have followed my 'lead' into that however. : )
     
  41. atbnet

    atbnet Notebook Prophet

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    They aren't closing up shop. They got a lifeline from Bank of America but in reality the tax payers.
     
  42. TemjinZero

    TemjinZero Notebook Evangelist

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    Lulz... updates for this topic.

    Dell apparently just got rid of their CTO... looks like he'll no longer work for Dell after December.
     
  43. Cin'

    Cin' Anathema

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  44. jet757f

    jet757f Notebook Evangelist

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    This pretty much says it all.............sound familiar?


    The company's top management, so called fat cats go from company to company and destroy the companies and send work overseas and layoff American workers.

    When they destroy a company they cut American workers and give the companies stock holder a little increase, then knowing the company will go down the tubes they depart, getting a so called golden parachute. --- and off the go to the next one to destroy.
     
  45. Cin'

    Cin' Anathema

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    Yeah and I especially like this part of the Reuter's article:


    2 Execs...hmmm...Well, really it could be that they did leave on their own accord :rolleyes: ;)


    Cin ;) :)