Michael Dell Targets Executives with Layoffs

By  |  Wednesday, December 31, 2008 at 6:26 pm

Dell logoHey dude, you’ve got a golden parachute. Dell Computer founder Michael Dell has fired the executives that he handpicked to turn the financially ailing PC manufacturer around when he returned as CEO in 2007, and may target lower level executives next, according to press reports.

The reports indicate that Michael Cannon, who has served as president of global operations and had responsibilities for streamlining manufacturing operations, will assume another role. Mark Jarvis, Dell’s chief marketing officer, is out. The duo received a combined US$22.8 million in compensation.

Until now, the company has asked its rank and file employees to bear the brunt of its cost savings. Employees were asked to take unpaid days off in November. Around that time, the company also began to charge customers a monthly fee for premium support.

While the company’s stock value has plummeted, it has remained profitable; albeit less profit than it was two years ago. It has assumed more debt, but its overall financial health is okay.

A Datamonitor Industry Market Research report from Apr. 2008 has Dell with a 8.1% share of the global computers & peripherals industry. Without having to play around with ratios, I’m confident that the company is not going under any time soon. When the world economy turns around, so will Dell–provided it has competent people in charge of its marketing and operations.

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