Report: Layoffs Underway at Dell Technologies
Layoffs are reportedly underway at Dell Technologies, where cuts of redundant supply chain and administrative positions had been anticipated since shortly after the finalization of last year’s record-setting merger between Dell and EMC Inc.
The $60-plus billion deal represents the largest-ever tech acquisition.
A day after the deal went final on Sept. 7, Dell founder Michael Dell reiterated that the merger was about accretion, but acknowledged that a small number of the combined firms’ 140,000 workers would be trimmed.
“There are some overlapping functions and that sort of thing – that’s not the primary feature of this, but there is some of that,” Dell was quoted as saying at the time.
There has been wide speculation for weeks about where and when the layoffs would occur.
News of the current round of layoffs was first reported Thursday by U.K.’s The Register technology publication, citing an unnamed company spokesperson and posts to an unauthorized blog about high-profile layoffs.
The Register report claimed nearly 80 workers had been let go from the company’s Hopkinton, Mass., facility. That report contained addresses of a number of EMC facilities in Northern California that posters also claimed are being considered for closure.
The Register also conveyed that the layoffs would occur over three rounds.
An unidentified Dell Technologies spokesperson was quoted by The Register as saying:
“While streamlining is never our first alternative, and we strive to minimize it as course of action, in a merger of this size it is necessary given some overlap in functions. Over time, we expect revenue gains will far outweigh any cost savings, and revenue growth drives employment growth.”
Previous published reports have said the new company is seeking to eliminate redundancies and realize any possible savings in the wake of the record purchase.
“Most of the cuts will come in the U.S. and in areas such as supply chain and general and administrative positions, as well as some marketing jobs,” Bloomberg reported in September, citing unnamed sources. “Dell is looking for cost savings of about $1.7 billion in the first 18 months after the transaction, but is largely focused on using the deal to boost sales by several times that amount.”
Update: Dell Technologies spokesman Dave Farmer has confirmed to the Austin American-Statesman newspaper that layoffs are underway. Dell Technologies is headquartered in nearby Round Rock, Texas.
“As is common with mergers of this size, there is a need to manage some overlapping job functions,” Farmer is quoted as saying. “We hope to minimize the impact on jobs and expect that revenue gains will outweigh resulting cost savings, with revenue growth driving future employment.”
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