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Dell Asking Employees to Quit

By - Source: Business Insider | B 28 comments

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.

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  • 9 Hide
    vmem , December 10, 2013 2:04 PM
    isn't this effectively a 'layoff' program for it's most talented employees since presumably only those who have confidence that they'll find another job will take the 'quit' package
  • 1 Hide
    chibiwings , December 10, 2013 2:17 PM
    Nostalgic.. Ü ex-dell exployee on their offshore site. it was a horrible experience... I work on the first half of the day then after my lunchbreak my site badcge stopped working then escorted by the security outside the office since we're no longer part of the company.. then sign the papers on HR. voala!
  • 6 Hide
    Martell1977 , December 10, 2013 2:28 PM
    What they say: "its a voluntary separation program"

    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.
  • Display all 28 comments.
  • 1 Hide
    dextermat , December 10, 2013 2:36 PM
    Sounds like the beginning of the end to me.
  • 0 Hide
    hakesterman , December 10, 2013 2:37 PM
    I would advise them to not agree to the program. You won't qualify for unemployment benefits and your lump sum total they told you will never happen. Uncle Sam will take a huge portion of it because it's a huge amount in one check. You will get osme of it back when you file your taxes, but it won't amount to much. Unless you got a for sure job secured, don't take it.
  • 3 Hide
    Tuishimi , December 10, 2013 2:41 PM
    @Chibiwings This type of employee management is not, unfortunately, rare. Many larger corporations treat employees that way. I've been through layoffs @ DEC and watched it happen... Great company to work for, terrible company to be fired from / layed off from.
  • 3 Hide
    Johnpombrio , December 10, 2013 3:51 PM
    Voluntary layoffs or early retirement are the worst for the company. Anyone who is very good at their job will quit while the ones that are pretty useless will stick around. That leaves you with the worst of your employees and the loss of the best.
  • 0 Hide
    vaughn2k , December 10, 2013 4:04 PM
    Had the same experience, since I started working 1994, from a processor company, then an optical transciever company until a power supply module company, where Dell is the number one customer... American companies here in the Philippines has really a way of 'releasing' people since 1997, where semiconductor an electronic corporations around the world started to slow down, and the rest are history... They will offer you voluntary resignations, then a separation package, then a severance package. If it sees there are still people need to quit, they will hold performance appraisals and salary increase, if still not, here comes the redundancy package... good luck! I like European companies better though...
  • -1 Hide
    PhilFrisbie , December 10, 2013 4:08 PM
    The beginning of the end was signaled when they took that money from Microsoft.
  • 1 Hide
    f-14 , December 10, 2013 4:58 PM
    considering how many people hate their jobs and only use most jobs to lateral their way up the corporate ladders to better jobs, this sounds more like an enticement to those type of people.

    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

  • 0 Hide
    g-unit1111 , December 10, 2013 5:22 PM
    Quote:
    considering how many people hate their jobs and only use most jobs to lateral their way up the corporate ladders to better jobs, this sounds more like an enticement to those type of people.

    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! :lol: 

    But yeah maybe if Dell would focus on quality control instead of profits they might start selling more systems and making more money.
  • 0 Hide
    jimmysmitty , December 10, 2013 7:04 PM
    Dell can pay me to quit. I will quit right now for $50K.
  • 0 Hide
    falchard , December 10, 2013 7:54 PM
    Dell will probably blame the "Slowing PC Sector" as to why they are doing poorly instead of their cheap ass "Slow PCs".
  • -1 Hide
    elmo2006 , December 10, 2013 9:56 PM
    Pathetic and snakish to say the least!
  • 0 Hide
    danwat1234 , December 10, 2013 10:03 PM
    PC sectors are fast on SSDs
  • 0 Hide
    SirSuperSouthern , December 10, 2013 10:14 PM
    Whatever, just lower the price on the Dell U3014s and it's all good baby...
  • 3 Hide
    atminside , December 11, 2013 1:15 AM
    Dell went down hill after firing that "Dude! you are getting a dell!" guy
  • 0 Hide
    martel80 , December 11, 2013 3:53 AM
    Quote:
    isn't this effectively a 'layoff' program for it's most talented employees since presumably only those who have confidence that they'll find another job will take the 'quit' package


    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.
  • 0 Hide
    alyoshka , December 11, 2013 4:24 AM
    Isn't all this penned down in the company laws when it's taking over or going private or something like that?
    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 ....
  • 0 Hide
    chibiwings , December 11, 2013 6:32 AM
    "Wonder how much that separation package is, what is included inside."

    @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.
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