Dell Asking Employees to Quit
Looks like Dell is trying to free up some cash.
A Dell spokesperson confirmed with Business Insider that the company is asking its employees to quit. Dell is calling this scheme a "voluntary separation program," and cannot be deemed as a layoff even though this program has layoff elements such as getting a chunk of money to use until the person finds another job, eligibility and so on.
"Dell has announced an optional, global and voluntary separation program for eligible team members who choose to leave the company in exchange for the offer of a separation package to support their transition," reads Dell's statement. "Would note that we've taken steps to optimize our business, streamline operations and improve efficiency over the past few years."
"And we [have] been consistent in saying that a critical element of our strategy has been, and always will be, about improving our cost structure and freeing up capital to make the investments in growth areas that matter to our customers," the statement adds.
There's speculation that Dell is feeling pressured to trim expenses, thus freeing up some needed cash. Founder Michael Dell and investment firm Silver Lake Partners completed a $24.9 billion buyout of the company back in October, making it a privately-held company. As part of the deal, the two borrowed $5.5 billion and another $2 billion from Microsoft. That said, it's no surprise that Dell is looking to free up some cash.
"Like any prudent company, we'll continue to evaluate and implement opportunities to enhance our operational effectiveness on an ongoing basis," the statement reads. "We won't have additional comment about the program, the number of Dell team members taking advantage of it or the cost involved."
The Dell spokesperson confirmed that this volunteer exit is not an early retirement plan, and is open to all global employees. Other companies have provided similar programs for long term employees soon eligible for retirement benefits, but this program has nothing to do with retirement.
What they mean: We are trying to lower our number of employees or swap some out for cheaper ones, but want to avoid paying unemployment/retirement. Thus, we need them to quit instead of being laid-off, fired or retired.
I hope the severance package is worth it, golden handshakes don't seem to be very golden in these situations. Makes me wonder if this is to lower employee count or so they are replace high paid workers with lower paid ones, before they can retire.
however as is typical after a buy out there is alot of consolidation and trimming of departments and product/services eliminated or reduced capacity in order to make back quickly the bulk or all of the purchase price and get back to profitable expansion as fast as possible. it's hellacious period and for those in the know that don't want to deal with all the restructuring and cut backs or increased work loads due to these, this is dells nice way of saying here take this especially you the guy with the R-R-R-Red stapler or take your chances with the TPS reports and the meetings with the BoB's!
Office Space TPS Reports
http://www.youtube.com/watch?v=Fy3rjQGc6lA
however as is typical after a buy out there is alot of consolidation and trimming of departments and product/services eliminated or reduced capacity in order to make back quickly the bulk or all of the purchase price and get back to profitable expansion as fast as possible. it's hellacious period and for those in the know that don't want to deal with all the restructuring and cut backs or increased work loads due to these, this is dells nice way of saying here take this especially you the guy with the R-R-R-Red stapler or take your chances with the TPS reports and the meetings with the BoB's!
Office Space TPS Reports
http://www.youtube.com/watch?v=Fy3rjQGc6lA
Office Space FTW!
But yeah maybe if Dell would focus on quality control instead of profits they might start selling more systems and making more money.
Except for this "separation program for eligible team members" clause. Guess what - the most valuable employees won't be eligible.
The same has happened in our company as well. The best employees were left out and crap employees did not take it. Few people left in the end.
These guy may make it voluntary, but, under present economic conditions, it ain't going to be very valid......
Arcellor Mittal for eg bought the closed steel plants in europe on a promise that he'd start them off and give the dying communities work, but, since the global demand is falling, he had no option but to leave them shut, but, the very intelligent governments and unions have sued his ass.... and he is pretty deep in crap by now.... there.
But for American based companies, I don't really think that applies, since the owner is God in a market driven economy ....
@MultiplAds
It's good enough to sustain your expenses for the next 4-6 months in our currency. that was 4 years ago.. i think they put the option of Voluntary program this time since Dell lost in our Labor and have to pay the Extra damages on the affected employees.
@Tuishimi
have to agree with you.. But that's how business work nowadays. I remember on my current company. They Layed off a whole department Last Dec 24. everybody was devastated. knowing that most of those people are onshore or Americans.