All these years I’d thought reductions were to appease shareholders from a revenue per head basis but looking at the ongoing trend, could a sale/split be another reason to reduce heads even further?
HNFY!
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Let's look at this in reality:
Dell Technologies=for profit entity
Dell Tech Ops=will reduce HC until pain is felt and delays growth (see re-hire of CSG team)
Customer=Not doing things the way they used to or how we want them too
Geopolitical situation is strained at best.
We know:
Its not 2005
Full Suits and big watches on a Monday review aren't applicable (I see you EMC)
Stack Ranks mean nothing (I see you SMB cool guys)
I was at a convention this week where PURE got the biggest applause in storage and Dell and NetApp shared 2nd.
In this same convention Dell Tech was perceived as the most reliable and most understanding partner. Straight up that surprised me, but the overwhelming census was that DT team members actually try to make it right.
DT might be doing some spreadsheet activities which we cannot control. Don't ever assume some LOB/Former CEO/Former Brand was trying harder to be relevant. It's BS.
EMC----Kept VNX around behind the curtains for 20 years ( no innovation)
Wyse----Innovation limited to maximize profits
Data Protection---Couldn't keep up prior to Dell purchase (no innovation)
Dell Client---Drastically off market until revamp by JC in 2013
Dell Technologies, challenging company to work for at times. Just remember your previous employers either sold out or the tech had a finite lifecycle. That's ok just stop the "ruin my world stuff"
My guess is when Michael Dell retires he also sells the company and has them change the name. imagine being retired and haveing a company named after you and not in your control anymore? I don't think he'd do this. Too much ego to have it named dell and not be in charge.
Dell is one of the 50 most profitable companies in the world. They are not being bought out.
Highly likely, and here are few glaring reasons. 1) from 156K hc in 2021 to 80k likely in 2026 (that’s ~49% decrease) in 5-7 years.. 2) brand unification to Dell, pro and pro max, ki-ling latitude and Inspiron, XPS, opti, is another big reason..
So it’s possible for MD to either de-merge or sell off.. clearly old men’s club is eager to cash out asap.!
Ai talk at Dell = XE servers. We are selling tons of them. The problem is we sell them at cost.
For the PC refresh, we sold 20% more units 3 or 4 years ago. Old school thinking is those units will need to be replaced around now. I'm not sure we're going to win all of that business or that companies with high knowledge worker headcount have as many people as 4 years ago.
It's a sinking ship. They are milking it as long as possible.
Had great years during covid and did not reinvest in the company. Instead sold off land and buildings.
constant layoffs to pump bottom line. No innovation.
Notice they just increased the yearly dividends too. Who gets paid most from dividends of the stock. Yes, the great grifter MD.
None believes in the great pc-refresh nor AI for dell. It's a grift till the lights go out.
A couple things have happened that Dell had a lot of visibility into:
Broadcom buying VMware, at which time VMware was forced to conform to Broadcom systems, allowing Broadcom to fire large number of VMware employees. Broadcom proved to MSD that you can be more aggressive.
Next, Twitter continuing to work with less than half of their acquisition headcount is pretty amazing.
On top of that everyone is convinced Ai is going to replace workers eventually. Dell leadership is paranoid that the company is going to be blindsided by some Ai driven competitors.
Net is the mess we're in
I love how C Suite and HR decided to have people start posting comments here. It IS a sinking ship. There’s no AI pathway and this “great PC Refesh” seems to be the consolation prize that isn’t even coming to fruition. Dell fu---d around, now they get to find out.
no sinking ship. shell game of removing costs instead of increasing revenues