Thread regarding Dell Inc. layoffs

Now they are going to end up in bankruptcy, guess that big gamble didn't pay off

But Dell has no clue on how to "compete" especially in the enterprise storage arena. They had an agreement in the early 2000's to build,sell, and brand the mid range Clariions. They did this until MSD opened his mouth during one of the trade shows about Dell becoming the number 1 storage vender and they would take market share/customers from EMC. Shortly afterwards Dell no longer had an agreement to build/sell with the re-branded Clariion line, which was always targeted for mid-range customer/install base. And they bought Compellent for their storage product.

Read between the lines. Listen to the language used by MD and JC. They use the word "compete." Now compare that with the Googles and Amazon's of the world. They don't compete; they dominate. Dell dominated in the 90s and MD bragged about that. Notice he and JC don't have that attitude anymore. They mention "compete" in various markets and segments when trying to spin news in a positive manner. The private financiers know it, too. They want their money back now before it is too late. Read between the lines.

The disclosure around debt is typical boilerplate disclosure for all public filings, whether it is for a publicly-traded company or a company that just has public debt.

This is quite literally the lawyers and accountants copying and pasting language from a thousand other filings into these documents because they must. Reading into this any further is drama.

Go Big or Go Home Baby! Dell is the biggest and baddest in the forrest!

We're downsizing by relocating to India. Don't worry.

Being that most large firms have taken on large amounts of debt, to buy back stock or just to pay the bills, the change in the tax code will adversely affect many companies, not just Dell.

https://www.nytimes.com/2018/02/02/business/dealbook/is-dells-debt-load-pushing-it-into-a-deal.html

Dell has a lot of debt, and pays a significant amount in interest payments. But it’s not necessarily an existential threat. One query that has arisen is how much Dell’s debt interest payments will hit its bottom line under the tax overhaul, which limits their deductibility. The company pays roughly $2 billion a year in interest right now, which under the old law it was able to deduct. The company has been narrowing its operating losses over the past year, and its cash from operations in its third quarter was $1.6 billion. On an annualized basis, it’s on track to generate some $8 billion worth of cash from operations.

So where is the problem, it is not visible anywhere, may be a gimmick to cut down the annual hike.

Finally, the cat is out of the bag! I wanted to know the debt amount.

It would be good to see MD finally recognized as a fool for his manipulation of the company and the ridiculous purchase of EMC.

Just calculate the interest that Dell needs to pay for a 52 billion dollar loan and you can already guess that bankruptcy is the only way out. That is why MSD buying the most expensive penthouse in NYC: to transfer as much assets as possible to his own pocket!

I don’t see how Dell can survive the following:

The Tax Cuts and Jobs Act could "adversely affect Dell Technologies' operations and profitability," said Dell in its filing. Changes in tax laws may unfavorably affect Dell's tax liability. The tax law lowers the corporate tax from 35 percent to 21 percent, although limiting tax deductibility of interest payments to 30 percent of a company's earnings before interest, taxes, depreciation and amortization (EBITDA). This will put even more pressure on Dell in 2022 when the tax law moves to 30 percent of earnings before interest and taxes, rather than 30 percent of EBITDA.

suppose if i purchase a hardware through online and dell closes the business, will i get my money back?

management are incompetent. They have no vision, no planning skills, not being able to hands on. Worser than a foreman.

The link to the subject is at https://www.crn.com/slide-shows/channel-programs/300101601/10-k-breakdown-5-potential-risk-factors-facing-dell-technologies.htm/pgno/0/1

Which just proves how much of a bill of goods the EMC acquisition was. Since concluding the deal the entire corporate focus has been to bring in as much revenue as possible to try and reduce debt. The resulting highly toxic work environment has driven all the good employees that weren't already laid off out the door, now management can't figure out why the company is floundering. Here's a hint, there are way too many inept managers that have no clue how to do their job and have zero people management skills. Employee morale is at an all time low and still sinking due to micromanagement, badgering, harassment, and veiled threats of job loss if the metrics aren't met, a sure fire way to make people want to do their jobs, NOT!

It took resigning and starting a job at a different company for me to realize just how bad it really is working @ Dell post EMC acquisition, it's like I've been rescued from being held prisoner in a North Korea labor camp and returned to the free world where I control my own destiny, I feel sorry for the poor souls still stuck onboard a now obviously sinking ship.

Given the information quoted in this thread I don't doubt that the axe will swing again sooner rather than later which begs the question, how much further can they cut and still have a viable business?