The Computer industry has to change to grow so this news is all relative to that process.
Dell’s expected layoff is expected to begin this week, and over 15,000 people may lose their jobs worldwide.
Insiders say that the PC giant’s restructuring operation has resulted in cuts in every department, “some of these have already been downsized and are now being told to cut 15% more heads.”
The restructuring efforts of the now privately-owned PC maker are down to a falling PC market, slumping profit margins and a slow start in the mobile realm where Apple, Samsung and Google now dominate. As part of the company revamp, founder Michael Dell is trying to focus on enterprise-related services including cloud and mobile systems — but this means that staff in sectors unrelated to the new business focus are at risk.
One of the sources predicting the cuts — which are expected to hit at least 15,000 people – states this will be “a bloodbath” when it arrives. The severance package is said to include two months’ pay plus an extra week for each year in Dell’s employ, a bonus at 75 percent, health insurance for 18 months in the U.S. and some outplacement services available, at least stateside.
Dell’s current chief financial officer, Brian Gladden, will soon be leaving Dell in order to “pursue career interests outside of Dell,” and will be replaced by the Texas-based firm’s chief accounting officer, Thomas Sweet.
Last week, Dell announced a partnership with Cumulus Networks to deliver Linux-based, bare-metal networking devices to businesses, to develop their “vision of the new data center networking model is an open ecosystem where customers can choose among various industry-standard networking gear, network applications and network operating systems to meet their business needs.”
Also last week – Lenovo purchased IBM’s Server business for $2.3 billion and the Motorola Mobility Smartphone Unit for $2.9 billion.
10 years ago Lenovo bought IBM’s money-losing ThinkPad business for $1.75 billion with Lenovo becoming the industry leader in personal computers in 2012. The IBM Server buy will heighten the competition for Michael Dell bringing Lenovo’s server market share from 2% to 14%. Perhaps this helps explain the massive layoffs slated for Dell employees later on this week.
Moving forward – it will most certainly be the tablet and smartphone manufacturers that will drive technology and the computing industry of our future. Where the dust will settle by weeks end is anyone’s guess. Hold on to your hats and enjoy the ride as we, the consumers, are dragged, kicking and screaming into the next big technology adventure.
