Dell Moves To Cut Staff As Debt Rises To Over $46 Billion
Dell Technologies whose PC’s and Alienware gaming machines are sold online and at JB Hi Fi has moved to sack staff in an effort to cut costs, the business is carrying over $46 Billion in debt.
The US Company who made a name selling PC’s direct has already started notifying employees that it will eliminate their jobs, it’s not known how many staff in Australia will be terminated.
The Company claims that they are trying to navigate a “faltering global economy”, they have declined to specify the number of job cuts.
Dell had 165,000 employees as of the end of January, according to filings they are also carrying $46 billion in core debt, mostly stemming from its 2016 acquisition of EMC.
Chief Operating Officer Jeff Clarke told staff during a quarterly all-hands meeting last night that the workforce reductions won’t be limited to any particular team or division within Dell, said a person familiar with the situation, who asked not to be identified discussing internal meetings.
“We’re also evaluating our business to make sure we have the right number of team members in the right roles and in areas where customers need us most,” a Dell spokesman said in a statement. It’s expected that several jobs will be cut in Australia and across Asia Pacific according to sources.
Dell has faced a rocky six months during COVID-19, claiming that while businesses and consumers have snapped up personal computers to enable working from home, some businesses have become more cautious in major data-centre purchases. Dell had already suspended bonuses and promotions for the fiscal year.
According to Bloomberg, the PC maker has also rolled out a remote-working plan to employees in countries around the world including Australia.
The company has asked for volunteers to work from home as much as they would like, from one to five days a week post-pandemic, as long as they have manager approval.
Dell has said that it isn’t making any adjustments to salaries “at this point in time,” and will give remote workers a one-time stipend of $400 for home-office equipment.
“We’re addressing our cost structure to make sure we’re as competitive as we should be now and for future opportunities,” the spokesman said of the job cuts. “While we do this type of organizational review regularly, and while it always results in some job loss or restructuring, we recognize that there is nothing routine about today’s environment. We updated our team today with this information, so they understand the actions occurring this week.”
Chief Executive Officer Michael Dell has tried to refocus his namesake technology empire on areas with the greatest strategic importance such as data-centre hardware, while making divestments to help the business pay down its debt claims Bloomberg.