Thread regarding Dell Inc. layoffs

The Hidden Cost Behind Dell’s Layoff Cycle

Everyone talks about Dell’s stock run and AI growth, but almost nobody talks about the long-term cost of the nonstop restructuring.

The recent numbers are pretty staggering:
• $227M spent on severance in just 13 weeks
• Another $242M already reserved for future severance payouts

And that’s only a small snapshot in time.

When you zoom out and consider the estimated 70,000+ employees impacted over the last 5–6 years, the total severance costs across all these layoff cycles could realistically be in the $2–3 billion range.

That’s an incredible amount of organizational churn that rarely gets discussed publicly.

Wall Street may reward efficiency, but these repeated cuts also come with major hidden costs:
• loss of experience and institutional knowledge
• employee morale damage
• constant reorg fatigue
• disruption to customers and internal teams

There’s a very different story underneath the headlines and stock price.


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| 1 view | | 4 replies (last 19 hours ago) | Reply
Post ID: @OP+1ktsax154

4 replies (most recent on top)

Nobody cares about the long term sustainability (and survival) of companies anymore.
Not shareholders, who only care about quarterly results and margins going up.
Not CEOs, who won't be there in 20 years to see the consequences of disastrous choices, but who can cash out thanks to bonuses and stocks.
Not the rest of the market, since once a company has been squeezed enough and starts collapsing, it will just be the perfect chance for some PE fund to buy it for peanuts, do some makeup and resell it to the next fund.
The only ones who care are probably employees, who don't want to lose their job and, in several cases, who really suffer from seeing the company in which they believed sinking like a rotten ship.
That's short-termism at its essence, but again none of the players who can influence the game seem to care.

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Post ID: @c6+1ktsax154

Dell doesn’t care about people. Once JC and AL took control in ISG everything is now a total sh!t show. These are by far the worst leaders in the history of the company. The stock is just smoke and mirrors. At the end of the day MD has sh!t in his pants.

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Post ID: @b4+1ktsax154

FWIW you can find severance costs in our financial statements going back 3 years. We might have hit a $1B over that total period. Don't forget we sold vmware so we're down about 35k employees through layoffs and attrition and the rest from the vmware sale

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Post ID: @ap+1ktsax154

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