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Summary:

Looks like the axe is about to fall. The company is weighing cuts of up to 20 percent in the U.S. and even more in EMEA, according to The Register.

Michael Dell
photo: Oracle_Photos_Screenshots

Ever since Dell took itself private in a $24 billion plus deal late last year, folks have been waiting for the other shoe to drop — as in job cuts and other belt-tightening measures.

It looks like the wait is nearly over with The Register reporting that the PC-and-server maker plans to cut deep — up to 20 percent of U.S. staff and even deeper cuts in Europe, the Middle East and Africa or EMEA. Dell disputed the Register’s percentages but in a statement said it is always evaluating ways to boost “operational effectiveness and allocate” in ways that may affect its workforce.

Here’s a brief timeline:

Dell, like hardware rivals HP and IBM, is in the midst of a painful transition — it’s trying to offer more cloud computing and software services in a world where PC sales are hurting as more people use their tablets and phones as primary devices. It shelved plans for its own public cloud and instead is working with several other providers on that.

I’ve reached out to Dell for comment and will update this when I hear back.

On Thursday afternoon, a Dell spokeswoman sent the following familiar-sounding statement:

“Dell continuously evaluates and implements opportunities to improve our operational effectiveness and allocate our resources. When necessary, we’ll continue to make tough decisions to help ensure our long-term success – some of these decisions may affect our workforce. We are committed to building upon our multi-channel approach to serving customers – channel, online and direct – and are investing in sales coverage and training.

Note: this story was updated at 6:10 a.m. PST January 10 with Dell’s official statement.

 

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  1. Those are some truly gigantic layoffs! How can you cut 20% to 30% of your employees unless your companies’ business is falling off a cliff? Dell has to be losing a huge amount of revenue and market share for this to even make sense! A big layoff is like 5% to 10%… If you need to get rid of one third, 30%… that’s insane!

  2. Ian Moyse ☁☁ Friday, January 10, 2014

    Another (HP !) example of a legacy hardware vendor weathering the market changes and the move to BYOD, cloud and a different way of working. Customers are burning kit longer, prices are reducing and brand equity is more neutralised. Unfortunately we can expect to see more of this in the IT sector for the next few years as the market adjusts to a more agile, nimble and internet based world.

    Ian Moyse

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