Dell Layoffs: Targeted Job Cuts Include Some Channel Team Members
Dell (NASDAQ: DELL) this week had targeted layoffs that included some channel team cuts, sources told The VAR Guy. Dell has since confirmed those cuts to The VAR Guy, but the company says channel partners should expect the same level of service and support they’ve always received from Dell.
According to one VAR, two of his 20 key contacts at Dell were let go this week. That VAR’s point contact at Dell remains in place.
Asked for comment, a Dell spokeswoman emailed The VAR Guy:
“Some positions have indeed recently been eliminated around the broad Dell organization as we continue to look for efficiencies that will keep us competitive.
While we’re not releasing any details about the number or which positions are being eliminated, we recognize any reduction is significant for the impacted team members and their teammates, and we are working to minimize consequences.
Our channel partners should expect the same level of service and support from us they’ve always received.”
The Back Story
Dell’s most recent earnings, announced in August, were soft because of weak PC sales — triggered by fierce competition (HP, Lenovo) and booming consumer spending on Apple iPads and smartphones.
Dell has been striving to build its enterprise software, networking, storage and data center businesses while continuing to battle hard in the PC market. Acquisitions like AppAssure, Wyse and SonicWall have been performing well for Dell — but those emerging businesses are not yet big enough to offset the PC market challenges.
Dell Channel Chief Greg Davis, meanwhile, is building relationships with Dell Software President John Swainson and newly hired Dell Enterprise Solutions President Marius Haas, a Hewlett-Packard veteran. The VAR Guy believes Davis and Haas were scheduled to have their first meeting about a week ago. Together, Davis, Swainson and Haas are looking to give channel partners end-to-end solutions for data centers, public clouds and private clouds.