Jeff hates costs and his employees, and he's all out of cost cuts.
Sam Burd is 100% sidelined, only kept on salary so he won't bolt for Lenovo or HPE.
Rumors are Jeff and cronies are laying out a massive downscale and will hit in Q1.
24 replies (most recent on top)
@dm i'd rather sell both. csg also helps provide purchasing power with suppliers, and being able to offer biz customers the full suite. funny there are both rumors of us getting out of csg, and of reentering/reprioritizing the lower price point pc market.
@rf you realize he was our on-site Bain consultant for years before we determined it was cheaper to pay him as an employee?
Sure would be on a positive track w chuck witten as COO. Employees lined up behind him ready to battle. A true leader
EMC had activist investors chomping at the bit to divide up the company and take it apart.
MSD and Silver Lake offered a way to “go private” and then have all the parts and pieces of the company divided up and sold off, making MSD and Silver Lake scores of Billions.
What was done to VMware was masterful.
@br no it's not good, and I can sense some pure selfishness in your comment, all you can think of is your Severances, you didnt think about how many people would lose their job ? how many would go months and months before finding another job .. think again before spitting some words ..
This is entirely made up.
Why wait until Q1?
The plan is to reduce total CSG staff to around 500 global and sell it off. Share price will explode because the PC division has always been dragging us down here.
Dell will be a B2B infrastructure IT company which is what we’re good at. No more consumer products or sales.
LFG!!!
@ev Never gonna happen.
@e2 Lol, let me guess. You never worked for EMC did you? Calling EMC a dying company is laughable and demonstrates your willfull ignorance. How is a highly profitable company with an expanding customer base, consistently exoandung its gloval footprint, and highly talented teams consistently innovating in any way a "dying company"
@ee getting rid of 65%of the revenue would only result in losing around 30%of the profits in exchange for dropping head count and the associated costs by roughly 50-60% It's insane to think Dell isn't considering it with the way they are trying to maximize profits and minimize expenses.
@dm Revenue is vanity and if you think the upper management is anything but that, I have a bridge to sell you. Getting rid of 65% of the revenue is not going to happen.
@e2
EMC Storage Market Share did go up from 2006 to when Dell bought EMC. It went up from about 22% to about 35%. As well storage revenue doubled in those years. Just look up the numbers. EMC was a strong player, and the acquisition aimed to create a combined industry leader rather than rescuing a company in financial distress. I don't see any evidence of EMC being in financial distress. If anyone has any information to the contrary, go ahead and post it.
@dp EMC business was saved by DELL when they bought EMC. People forget how badly EMC was dying back then.
@dn Funny. EMC made it almost 40 years without selling consumet computers. I'll add this to the point that @dm was trying g to make. A low end storage array sells for around nine thousand dollars. They cost around fifteen hundred dollars to make. Plus customers typically pay several thousand more for a support contract. This means any company selling them can make significantly more money with a simikar sized workforce than a company selling consumer electronics. This concept is the epitome of the "do more with less" mentality Dell management is pushing. Couple the rock bottom profit margins, slumping sales, and inferior quality of Dell's consumer products and it does make a certain amount of sense to lay get out of that market. Dell would get to lay off a large portion of its workforce that is generating less profit too.
DELL needs to stay in the volume business to maintain name recognition and brand awareness. That means having a laptop at every consumer price point from Walmart trash to super high end. No company selling its consumer computer business survives for very long.
@d2 No I am not daft, but thank you for demonstrating your lack of basic business and math knowledge. I'll try to simplify it for you. CSG products bring in more money (revenue) however CSG products generate less overall profit than ISG products. Imagine you owned your own business and have 2 products for sale, we'll call them product I (ISG) and product C (CSG). Would you rather sell 5 units of product and make $1 million or sell 500,000 units of product C and make slightly less than $1 million?
@b9 Never gonna happen. Why would you slash 65% of your revenue? Are you daft?
@OP Good! Bring on massive cuts in Q1! Then some of us can benefit from Severance and Unemployment when we are planning to retire then anyway! Hope the timing is perfect! But too bad for the rest of you.
Honestly Dell should just shut down csg and get out of the laptop business altogether. They're terrible, cheap chinesium products and consumers are catching on.
Jeff needs an “All In” pep talk from his boss! I know that always cheers me up.
I hope so
HP is primarily PCs and printers. HPE is their Enterprise company concentrating on servers, storage, and technology services for businesses.
You mean HP?