Would explain:
channel first
100% online
all the outsourcing
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EMC was 40k when they ran entire enterprise business
Today you add servers to the mix only , maybe a bit of LAN and that's it. So question is - is 40k additional employess good enough to sell laptops ?.....LOL, so it required that many people to sell 20 percent of what Dell was selling?
They (EMC sold refurbed and new storage appliances to customers). They didn't sell enterprise they sold point solutions. This is fine, just don't exaggerate what it was. Dell was a company that sold it's highest margins outside of Enterprise as Enterprise is the cheapest market yet largest scale. Reason why EMC and Dell dropped pants for storage.
IP sales are important but marketing/sales/ops have to be aligned. Channel doesn't as 88.7% of time they are paper pushers.
@6roa+1pxBZbej Funny.Im inside sales and feel the AE's are pretty much useless since Covid.
Overpaid lunch hosts IMO or course.
Maybe a less generous VBO will happen to reduce some of the workforce. I'm not holding my breath though...
I'm an IC and I know for a fact that they want the inside folks to increase their knowledge and get in front of customers. Many of the inside sales people just support the field AE's and never talk to the customer. I speak from past experience being an inside rep in T1 and Enterprise.
1 AI for support. 1 AI for sales. 1 AI for new product development. All running on 3 XPS 17 laptops in a dorm room with a cloud DR.
EMC was 40k when they ran entire enterprise business
Today you add servers to the mix only , maybe a bit of LAN and that's it. So question is - is 40k additional employess good enough to sell laptops ?
I think answer is simple.
MB/SMB is now pushed to channel and all structures supporting it will be released. Than business lines of high volume low margin products will follow the same pattern to keep only high-margin products that don't sell en-masse
80k is pretty good number and I know it means 50k people would need to look for the new job but realities of capitalism is all what investors care about
VBO is right around the corner.
Severance is required actually. But it is couched in a WARN act FED level and in some cases a more aggressive State level.
Generally it is 2 months notification for those laid off should the layoff meet certain criteria. Companies with good legal teams are on top of labour laws at a state/region/cities level.
I think Dell just started with 2 months severance in the USA as a standard and baseline for legal protection and sheer expediency
Their real severance is really 1 week per year.
Correct not required.
Dell only does it as the cut the intent and letter of employment law super fine, and it has bitten them in the butt several times for big $$.
The severance agreement includes waiving any claims, which is why the darn things exist.
The non disparagement clause exists, but isn’t enforceable as the NLRB ruled earlier this year that those clauses aren’t enforceable beneath executive ranks.
It also can’t preclude Section 7 EEOC claims, which is most definitely becoming an issue.
Severance is not a legal obligation for
any company . Most employers offer a severance agreement that defines the financial terms an employee will leave a company when their employment is terminated. Severance agreements are not required by law, but employers tend to offer them as gestures of goodwill or to be competitive in their industries. In Dell case is to protect the company from future lawsuits or releasing any information to the public that may affect the company’s image.
@okx+1pxBZbej Easy.Massive pressure.
Less payouts.Natural attrition.
Q: How do you reduce headcount without having to pay them severance?
A: Inject them with something that reduces headcount.