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Dell Cuts Running Deep

The number 2 PC maker is feeling the economic pinch and continues with their plans to trim back on their operations. The computer company has a world wide hiring freeze, in addition to 8800 job cuts it has already instituted. In addition Dell’s CEO and founder Michael Dell, is asking employees to take off 1 to 5 days of unpaid leave.

It seems that Dell is trying to salvage some jobs by asking for employees to cut their paid time. But it makes one wonder how long it is going to be before the company may have to make further cuts. In these economic hard times, anything that can prevent further job loses is to be applauded.

Dell CEO also stated that:

“We believe we have a $3 billion opportunity to drive both productivity and efficiency,” said Dell, who is also chairman of the company, in a press statement Monday. “We’ve analyzed the business and opportunity, so we know — without question — where our priorities should be. And as we’ve reignited growth in our business, we’re taking deliberate steps across the company to improve our competitive position.”

So what do you think? Can asking employees to sacrifice some of their leave time without being paid will help the company and the employees that remain?

Comments welcome.

Source.

13 Comments

I have been through this type of thing several times. When asked by management to make the sacrafice I have said yes as I believed in the company and felt that doing this would help me and the company. However when the company got back on its feet and things were rosy I and others who had said yes were never made to feel that they had “done good”. I would not do the same again.

The whole solution to solving all of America’s economic woes is to bring JOBS BACK TO AMERICAN WORKERS!
I have said for the last eight years that if AMERICANS can’t find jobs they can’t pay their mortgages or buy new cars, appliances, homes, and yes, even computers.
I hate this new Dell monitor that I recently bought from “Sam’s Club”. A call to India was a disaster, it took four people to get me one that I could communicate with…….Bullcrap.
Thanks for your time.
Oh, and if my solution to the dollar woes sounds too easy to some of you then you must be politicians.
Kyle

Thanks for the comments. I agree. We need to bring back jobs to the USA.

According to accepted economic theory, Americans can have *any* job they want in America provided 1 or more of these conditions:
1) consumers pay more for products. This is because American labor inputs are expensive relative to overseas producers.
2) increase American labor productivity to off-set higher labor costs such that net cost of product is the same
3) take a huge pay cut such that net cost of product is the same

I don’t see any of this happening soon. Folks that expect to do the same job all their life need to reconsider, open some books, re-tool, go back to school, move on.

Good luck & God bless.

Well said Parker. You can’t blame the government for shipping jobs overseas? It’s the companies that do this to save money and they won’t bring the jobs back when each American work lowers their bottom line more than overseas workers.

For companies, it seems that the bottom line is what matters in the end. If you don’t make money, you don’t have a business.

Kinda makes you seriously consider moving to India.

It’s what I think of as a “Cat-Claw” bush. We had them in Arizona. They were easy to stick your hand into, but the thorns pointed inward so that once in, you could not remove your arm without pain/harm.
“Creative Management” (a pseudonym for criminal behavior “under the radar”) has always been a problem.
The real “cat-claw” here is that US standards have crumbled under the weight of a failing educational system which was populated by a bunch of “change-agents” (See “The Change Agents”, by Barbara Morris, published in the 1970’s – enough time has gone by that we can see the results and determine just how correct she – and others – have been.
As one who has passed the “three-score” mark, I have seen the changes in education and the resulting diminishment of productivity in this country (US). Since I’m not independently wealthy, I have been working all my life; I have noticed, first-hand, that the “younger generation” is not willing to work as their predecessors. I’m not casting unfair aspersions against them as a generation; my kids have suffered the same problems and complain even more loudly than I do, so it’s not just me.
What I think is a great contributor to this problem is the lack of real education, the lack of real responsible role models, the overabundance of “entertainment” in “education”, coupled with this moronic idea that everybody MUST be rewarded no matter whether they worked, tried, succeeded or whatever.
This is not the first time people (even experts) have written that there is a paucity of initiative, honest labor, and a glut of “rewarded” undereducated underachievers.
Who’s going to be here to hire if corporate America returns all its facilities back onshore? Are the “unions” going to stop their eggregious behavior? Are people going to realize that le$$ can result in more? If they never learned meaningful history, how can they benefit from it?
Not until we return – en masse – to the Founding Fathers’ understanding(s) of “Rights”, as defined by the volumes upon which American Jurisprudence was founded: Blackstone (not Blacks Law Books); that a “Right” was “the opposite of a Wrong”, can we ever hope to achieve any form of productive, honest, greatness.
And, no, I do not condone, agree with, or choose to dismiss, the horrible misdeeds and wrongs committed by the Founding Fathers. What they did with Slavery and the senseless massacre of Indigenous people was unforgiveable. I think we should improve on their ideals wrt persons vs property. I don’t believe that we can “tolerate” aggressive masses under the colour of religion however.
So much for foundations. For Americans to bring it home, there must be those willing, able, and ready to produce quality in exchange for their wages.
EndOfLine.

Maybe you missed the point. The power & responsibility to stay current & valuable is in *your* hands.

Government is a warehouse for 3rd raters who resent moving out of Mom’s basement, paying for stuff and working.

Corporations (collections of people), naturally try to produce the highest quality, highest volume for lowest cost. That’s supply.

You, sir are the demand side. If you you wish to pay way more for same or inferior quality, then knock your self out.

It’s a small, high-cost club your proposing. Have fun!

PS – previous comment assumes we’re talking about commodity products.

If you build a product or perform a service, especially a high-value, rare product or service, then you rewarded in kind.

Government is not going to deliver that value or magically give you a productivity/wage increase even if the borders are closed and imports banned.

Therefore, that leaves innovators and Corporations to fill the gap, create jobs, pay wages, increase productivity, etc.

Thanks for the comments everyone. They are appreciated.
Regards, Ron

The current Tax system of over 15,000 (!!) laws is harming big and small companies and individuals. How did we get up to 15,000 freaking tax laws??? And having to report every move you make (income, purchases, etc, etc) to the IRS. Tax compliance costs both time and money.

The answer is to go to a simpler tax system. I think the Fairtax is best. 17 countries have already switched to a consumption tax and their economies are doing quite well. – Check it out and support it at Fairtax.org

Jose
It was written into the Nafta that any nation trading unfairly could be dealt with and the president or congress could impose heavy tariffs and yes, the president could rescind the NAFT Agreement.
Now Bush wants to extend that agreement to include Columbia. Maybe that will help bring down heroine and cocaine prices.

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