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Dell lays off 300 at headquarters, 100 in China
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Rocke_T_Sinetist
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PostPosted: Sat Oct 29, 2005 11:04 am    Post subject: Dell lays off 300 at headquarters, 100 in China Reply with quote

I'm a lousy transcriptionist or I'd type in the whole articles (Austin American Statesman), maybe Linc will scan them in for us.

Dell announced earlier this ( Oct 24-28 ) week the layoff of 100-150 in China. Where are they outsourcing those jobs? To the internet Nigerian prince who promised them million$ in return for a small transfer fee?

Then a restructuring at headquarters that will layoff an estimated 300. Dell didn't release exact numbers in the reorg, the 300 came from knowledgeable insiders (several of the victims).

The reorg 'brings consumer back under Americas'. What that means to customers, or the languishing stock value, remains to be seen. It's happy holidays for the victims. I've got your 'soul of Dell', right here. Evil or Very Mad
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ShaftDu
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PostPosted: Sat Oct 29, 2005 12:35 pm    Post subject: Reply with quote

Quote:
Dell announced earlier this ( Oct 24-28 ) week the layoff of 100-150 in China. Where are they outsourcing those jobs? To the internet Nigerian prince who promised them million$ in return for a small transfer fee?


eh, one day we will have robots answering the phones. Or just a recorded message from Dell: If you need tech support, hang up and try again.
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rustyboots
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PostPosted: Sat Oct 29, 2005 1:08 pm    Post subject: Reply with quote

I think most of those laid off may have come from the HelpDesk in Consumer. I was told several weeks ago by a friends still working there that this was in the works. If it is the same layoffs my friends was talking about, then it includes some of the more senior people left in Consumer, thus also the some of the most highly paid. Great way to make the numbers this quarter, lay off people. Dell strikes again!!!!
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hotrodlincoln
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PostPosted: Sat Oct 29, 2005 1:08 pm    Post subject: Here's the Austin newspaper story from today: Reply with quote

Quote:

Hundreds of workers laid off

Unspecified number of job cuts are most in Central Texas since 2001 tech bust.


By Dan Zehr
AMERICAN-STATESMAN STAFF
Saturday, October 29, 2005


Dell Inc. laid off hundreds of employees Thursday and Friday, the company's largest cuts in Austin since it downsized after the tech bust in 2001.

Dell spokesman Jess Blackburn declined to say how many jobs the company eliminated but said it's "probably a fair characterization that it's the most significant" since Dell laid off 5,700 workers in 2001.

Several laid-off employees, who declined to be named, said they heard from colleagues that the company had cut at least 300 jobs. Dell occasionally has laid off workers in the area but typically in smaller numbers than this week's cuts.

The company eliminated 150 jobs when it downsized its local data centers in fall 2002 and cut another 141 employees from its product development group about five months later.

"We certainly understand it's significant for them," Blackburn said of employees affected in the latest round of cuts. "But in terms of characterizing the size of the job actions taken, it's a small percentage of our overall work force" in Central Texas.

Dell employs roughly 18,000 people in Round Rock, Austin and near Waco. That's up from a low of about 16,000 in 2001, when the company cut almost one-fourth of its Central Texas work force in response to a massive slowdown in high-tech spending.

Blackburn said the bulk of the recent layoffs stemmed from a major realignment of Dell's consumer business.

The company is folding its consumer-focused operations back into the Americas group, he said, returning to a structure the company used in the past.

"As a result of that, unfortunately, there have been people whose jobs have been eliminated," Blackburn said, adding that some of the job cuts extend beyond the consumer-division realignment.

Five laid-off employees, all of whom asked not to be identified, said Dell has been tightening its belt since the company missed its revenue forecast in the second quarter and cut its sales forecast for the third quarter, which ended Friday. Dell's stock has hovered around $32 a share in recent weeks, roughly $10 less than it was trading before the earnings release Aug. 11.

One of the laid-off workers said, "I didn't see it coming too long ago, but within the past couple days, things seemed odd. I couldn't put my finger on it at the time, but now I can look back and say, 'Ah, a couple of those things make sense now.' "

At least four current employees, who also declined to be named, have said in recent months that the company has postponed some job transfers and restricted travel and other nonessential expenses such as off-site meetings.

When asked about the tighter control of expenses in September, Chairman Michael Dell said, "There are always things we're doing. We're very focused on execution. . . . There's no lack of attention there."


http://www.statesman.com/business/content/business/stories/10/29layoffs.html
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Scoop
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PostPosted: Sat Oct 29, 2005 2:56 pm    Post subject: Reply with quote

Why is it called "layoff" when people were fired?
Oh, that's incorrect as well. They're simply no longer with us. Rolling Eyes
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rustyboots
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PostPosted: Sun Oct 30, 2005 12:12 pm    Post subject: Reply with quote

I hate to be so cynical, but everyone should watch the SEC filings to see who sells stock in the next week or two. I survived the massive layoffs in 2001 and I remember seeing who sold shares. Upper management was dumping stock like crazy at those LOW options prices; some option prices were under a $1.00. The same people who fired people sold options before the stock went lower. I would imagine the same will happen now. Some of the same people are now in charge again.....R* P***a being one of them.
Just curious as to who sticks with the company and who sells out. Rats leaving a sicking ship? LOL
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Uwe
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PostPosted: Sun Oct 30, 2005 3:05 pm    Post subject: Adding 2 cents worth Reply with quote

Adding 2-cents worth on what was heard by my friend in hallway chatter :

1) EMEA announced 170 layoffs on FRI. APJ is also kicking out folks, but keeping some of them until Dec 31st to keep the year end rush

2) Layoffs included senior execs, directors and C3 levels since they eliminated two major business segments of Home & Small Business ( that is where most of the salary & seniority came from ).. Heck, they even kicked out the Father of Business Process Improvement at the corp and first Executive Black-Belt winner.

3) Heard on grapevine... Dell VP of Global Diversity is terminally ill in Houston with cancer and will pass away by end of this year. Yet, not a peep from corpcomm on it.

All in all, it is about 1,800 they kicked out in 2 weeks. Which is a medium number considering in 2001 the 5,000 were kicked and another 3,000 contractors ejected and 2,000 folks leaving by choice before the economy got flooded with unemployed folks.

Things happen when Dell missed 80% of its quarter profits, not to mention the bad quarters they had for the past year and half.
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Uwe
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PostPosted: Sun Oct 30, 2005 3:09 pm    Post subject: Reply with quote

[quote="Scoop"]Why is it called "layoff" when people were fired?
Oh, that's incorrect as well. They're simply no longer with us. Rolling Eyes[/quote]

----
(remark) If they "fire" you, you have no severence package, they can place a black mark in your employment record and you will find it hard to get another job.
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Rocke_T_Sinetist
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PostPosted: Sun Oct 30, 2005 3:37 pm    Post subject: Reply with quote

Quote:
they even kicked out the Father of Business Process Improvement
Goes to show that meritocracy isn't only merely dead at Dell, it's really most sincerely dead. The way to improve one's "business process" at Dell is: Practice your pucker. Develop an appreciation for the smell of buttcrack.

Quote:
Why is it called "layoff" when people were fired?
Small distinction, as to what's entered in the records, though they're not supposed to give that out when prospective employers ask. Layoffs are just the PUBLIC way Dell gets rid of people.

Even though in Texas an employer can fire you for no reason at all, if they want to get rid of you in-between layoffs, this is what they do-- your manager will concoct some complaint about your performance, put you on a PIP, then no matter what you do, claim your improvement was inadequate. An example that I witnessed: An incompetent manager had taken over a competent department, which made him most insecure and uncomfortable, so he set out to get rid of all that annoying competence. One engineer was put on a PIP and his 'project' was to solve the problem of lightning destroying modems. Yeah, solve lightning. Well there IS a solution... the phone company doesn't blow up every time there's a thunderstorm, and they're on the other end of the same wire. The difference being, they spend about $15 per line on protection. Applying that solution to PCs would double the cost of the modem. The manager's response, "inadequate performance, you're fired". Easy as Dell!
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rustyboots
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PostPosted: Sun Oct 30, 2005 6:05 pm    Post subject: Reply with quote

If the Father of BPI is gone, there is a chance Dell may last another 6 months before the bottom falls out. BPI sounds good, but the actual practice is fraught with probable fraud and BS.
I have seen good people get put on PIP and others who come and go as they please, left alone for months. I cant say it was pucker factor, but you have to wonder how they get away with it!
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Rocke_T_Sinetist
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PostPosted: Sun Oct 30, 2005 8:32 pm    Post subject: Reply with quote

Sup Rusty? I'm feeling kinda oxidized myself. Laughing Cool Nyuk, nyuk, nyuk! (No offense, cheap 'ba-da-boom'.)

Yeah, let's expose the practice of BPI. Great thing to keep in the back of your mind for day-to-day decisions. Like "think green". That's in the hypothetical sense, all but one time in a hundred where that little extra awareness makes a difference.

It adds up in a mega-corporation, but it hasn't added to stock value which is the ultimate goal, and it hasn't added to better operations which is an intermediate goal.

What it DOES add up to, is 'administrative overhead' which every otherwise-productive employee has to budget into the job s/he was actually HIRED for.

And what does this overhead produce? The answer is nebulous. But it tends to make a whole lot of people look stressed, frazzled, a leeeee-tle TOO busy. Frazzle was kinda fun, back when your stock options split every 9 months. Oh, and 'back then', they were also building an 'empire' out of mostly nothing but an obsessed Intel salesman, there's an entertainment factor to that. Now, 'frazzle' is little more than a liability to health and well-being that detracts from performance.

Think they could 'build that empire' today? With their BPI blackbelts, PIP-wielding managers who just want to hire their fraternity brothers, layoffs performed with the surgical grace of a blind farmer swinging a dull machete... where does one stop?...

BPI in practice becomes a 4th-grade-dodgeball gym exercise. Initiatives requiring employees to use company toilet paper on both sides, stuff like that, because everyone is under the gun to come up with something.

After 2 or 3 fiscal quarters, every 'business process' that CAN be substantially improved already HAS BEEN. and productivity is being sacrificed for procedure; the process works against itself when pursued obsessively. Aren't MBAs supposed to know this stuff? Why the **** not? What DO they know then Question Question

Slogans are like... well, slogans. In government and religion, slogans are job one. Management too eh? It's just another control institution and operates under the same principles. We can only be 'so shocked' to discover that.

OK then, time for a new slogan! Got any zingers?
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rustyboots
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PostPosted: Sun Oct 30, 2005 8:58 pm    Post subject: Reply with quote

Rocke,
Oxidized? Nice term. I would have to say I was pretty much carbonized when I left Dell.
You are right, in theory BPI is a good idea. In practice, it pushes people to think of anything that looks like it saves money. In my opinion, it is a good thing in a "production" atmosphere where people actually touch things, i.e. Dell production.
In a tech support atmosphere, where 99.99% of activity is on the phone with customers, BPI tends to "look" successful. In reality, you are moving numbers from Column A to Column B to Column C and telling Management that you have saved money by keeping people on the phones more. In actually, you have them hiding in other phone codes that are not shown in the Power Point slides you use to show how good your Project was. The MBA's know this, but if they ever point it out and if all the BS is ever exposed, all those options will be lost. If you get options any more! You are right, it was fun to work in that "frazzled" atmosphere when options were a possibility.
For a while in Consumer, it appeared you had more Project Managers that you had techs. If each one of them saved "real" money instead of BPI money, Dell could make their numbers every quarter with no problem. But BPI savings are fictional, not real. Looks like you saved, but you did nothing. Maybe one day someone will wake up. But I suspect the Feds may catch on before Dell Management does.
Sorry just a little venting! LOL
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mondeo
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PostPosted: Mon Oct 31, 2005 1:19 pm    Post subject: Reply with quote

I (sadly) can confirm that there is a currently a major cull going on within the UK - 180 people to go through involuntary redundancy and at the moment S&P and ASG are suffering the most. Apparantly the whole ASG management structure from the top down has been removed and the whole of S&P is gone.

As usual (and in traditional Dell style) no one high up is confirming anything and everyone is being left hanging speculating and not knowing whether they will have a job tomorrow or not. The annoucemet was made on Friday which screwed everyones weekends and even now at 18.20 still very few know whats happening - appreciate these things have to done now and again but we are human beings with emotions, families and mortgages and we are being treated with utter contempt and a COMPLETE lack of respect.

Will keep you all posted.
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The_Insider
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PostPosted: Mon Oct 31, 2005 3:04 pm    Post subject: Reply with quote

mondeo

know quite good some ppl in Bracknell. Will check tomorrow, if they are still there.
Here also ..no real statement.
At least our Works Council has made some statements and also the ppl here are not leavin without Dell has to pay them some money.
Why is this not public? Normally every newspaper, online site is eager to post such things?
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mondeo
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PostPosted: Mon Oct 31, 2005 3:46 pm    Post subject: Reply with quote

The_Insider wrote:
mondeo

know quite good some ppl in Bracknell. Will check tomorrow, if they are still there.
Here also ..no real statement.
At least our Works Council has made some statements and also the ppl here are not leavin without Dell has to pay them some money.
Why is this not public? Normally every newspaper, online site is eager to post such things?


The redundancies are going to affect both Cherrywood (Bray) and Bracknell - there is a severance package being offered but in the current climate I think everyone would agree that a job is better than a small lump sum but obviously its better than nothing.

So far I havent seen anything in the press - normally sites like theregister.co.uk pick up on these things pretty quickly but I guess as its not been made official yet they just havent had anyone contact them and let them know.
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