Published in News
Dell focused on cost cutting
by David Stellmack on06 November 2008
Asks employees to take unpaid leave to help
Things are tough all over, but after Dell said that it would be restructuring and laying off 8,500 jobs it is now asking employees to take up to five days of unpaid leave in an effort to help the company weather the current economic downturn.
Dell still plans to reach its goal of $3 billion in savings over three years. The request to take voluntary leave is all part of the plan for to help reduce costs. Dell is asking that those considering taking the voluntary unpaid leave do so in the next three months.
Dell is like most in the PC business and they are struggling, but working in increasing sales in non-traditional ways and in market spaces. Dell also announced that it would be entering the cloud computing model as a way to drive the cost of IT services down for its customers. Dell is banking that using cloud computing to deliver applications over the Web will be the next big thing.
Dell will continue to invest, but will have to do it wisely until spending and budgets increase. We suspect that tough times will continue until we see some sort of economic upturn, which is likely not on tap until sometime late next year.