It is not impossible to make a profit without cutting employees. So many companies have proven this. Dell has proven this in the past. So what changed? Why are layoffs now the main profit driver? I'd really like to know. Is this just due to bad leadership or is something else at play?
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Bain.
With EMC, Dell bought a storage company that couldn't sell storage.
What are you talking about? The emc takeover was highly successfully and dells cash flow is very strong
I think the answer is Dell could not afford EMC. I'm sure there was a scenario where if everything went right that acquisition could have paid off, but as we can all see that is not the scenario that played out. When you can't afford your bills you cut costs.
but it does feel like the deepest cuts that I have seen since the dot.com bubble burst.
How big will the august layoffs be
Dell leadership has no idea what it’s doing. It listens to a consulting company to run its business. That’s why it’s terrible.
Dell has been investing a lot of money into trying to innovate. If they have lost confidence in their ability to do that profitably, then they would shed the OPEX. This not the first time they have done that, but it does feel like the deepest cuts that I have seen since the dot.com bubble burst.
There is a bubble frenzy and Dell must continue to sell at a loss to gain market share in the bubble. More layoffs mean they can fund more 0% margin deals. Wall street sees the market share increase and more people invest in the bubble. Execs cash out before the pop and 401ks are left in ruin.
Lets be honest.
EMC was a creative space where creative thought and innovation were not forced but happened naturally. Jobs were hard to get as you had to know your stuff and you did put in the hours gladly. This did not feel like work, instead there was pride in a product, employees were first.
Dell is telling you to be creative or else, similar to certain companies in China....lock the roof doors and windows!
Subtle changes brought about by sickening promises of "We Care" as critical jobs go overseas. This as they protect your health with abandon by mindlessly using measures that harm as opposed to promote better health.
Dystopian plans that fall in line with other major companies to move to a socialist mindset driven by shareholders with an agenda.
2020 did not decrease the workforce as planned so now layoffs are needed.
In typical Dell fashion I expect outsourcing to be at an all time high as Dell looks to escape a mess it created and looks for those willing to bend a knee.
The only thing I can compare to the vibe at Dell now is that it's eerily similar to the feel at EMC just before the acquisition was announced.