Menu
Dell says it is open to layoffs as rumours swirl

Dell says it is open to layoffs as rumours swirl

Dell declines to confirm a media report that it would lay off sales and marketing people in the US and EMEA

Dell has declined to confirm a report of employee layoffs, but said it could make decisions related to the workforce if necessary in order to maintain company stability.

The company will cut 20 per cent of sales employees in the US and 30 per cent of sales and marketing jobs in Europe, Middle East and Africa, according to a news report in The Register.

"When necessary, we'll continue to make tough decisions to help ensure our long-term success -- some of these decisions may affect our workforce," said Dell spokesman David Frink in an email, adding that the company did not comment on rumor and speculation.

The reports come after CEO Michael Dell and equity firm Silver Lake Partners took the company private in a $US24.9 billion deal in October last year.

While Pund-IT analyst Charles King was not aware of the layoffs, he said going private may not have influenced the decision.

"Being a public company wouldn't preclude them from making a move like that," King said.

The sales staff could be targeted as the company unites product lines and sells more products through the channel. Dell has acquired many companies in the last five years, and as they unite product lines, the number of salespeople could decline.

"With a holistic approach to sales and marketing, there will be some redundancies," King said.

At the company's Dell World conference in December, King also noticed an increasingly large percentage of sales being driven through channel partners.

"As that channel gets larger and robust, it's going to have an impact on [direct] sales," King said. "I'm not saying that's the reason, but that'll be a logical extension."

Agam Shah covers PCs, tablets, servers, chips and semiconductors for IDG News Service. Follow Agam on Twitter at @agamsh. Agam's e-mail address is agam_shah@idg.com


Follow Us

Join the newsletter!

Error: Please check your email address.

Tags business issuesDelllayoffs

Featured

Slideshows

Tech industry comes together as Lexel celebrates turning 30

Tech industry comes together as Lexel celebrates turning 30

Leading figures within the technology industry across New Zealand came together to celebrate 30 years of success for Lexel Systems, at a milestone birthday occasion at St Matthews in the City.​

Tech industry comes together as Lexel celebrates turning 30
HP re-imagines education through Auckland event launch

HP re-imagines education through Auckland event launch

HP New Zealand held an inaugural Evolve Education event at Aotea Centre in Auckland, welcoming over 70 principals, teachers and education experts to explore ways of shaping and enhancing learning using technology.

HP re-imagines education through Auckland event launch
Reseller News ICT Industry Awards 2017 - Meet the winners...

Reseller News ICT Industry Awards 2017 - Meet the winners...

Reseller News honoured the industry’s finest on a standout evening for the New Zealand channel, recognising the achievements of established and emerging partners on a memorable night in Auckland.

Reseller News ICT Industry Awards 2017 - Meet the winners...
Show Comments