Dell layoffs this week: 15,000 to be hit: report

Dell’s expected layoff programme is expected to begin this week, and over 15,000 people may lose their jobs worldwide.

Insiders speaking to the Register 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 per cent 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 publication’s sources predicts the cuts — which are expected to hit at least 15,000 people — will be “a bloodbath” when it arrives this week. The severance package includes 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 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.”