Or, Hello Monster.com! From today's Wall Street Journal: Dell Computer Corp., after slashing prices amid slowing growth in the personal-computer market, is gearing up for deep expense cuts that could include the first layoffs in its 16-year history. The Round Rock, Texas, computer company recently told managers to prepare for expense cuts of 8% to 10%, according to people familiar with the directive. The cuts would be on top of a series of moves intended to counter an industry slowdown. Dell already has frozen most hiring, barred travel unrelated to sales calls, and cut some marketing programs. A spokesman for Dell said he wasn't aware of any broad reductions. Last month, while warning that his company wouldn't meet Wall Street analysts' earnings forecasts for the fourth quarter ended Feb. 2, Dell Chief Executive Michael S. Dell said the company would cut costs to improve profit margins. Mr. Dell said, "Our businesses will make [expense] adjustments as they see necessary to be sure we remain competitive." At 4 p.m. in Nasdaq Stock Market trading Thursday, Dell was down 44 cents at $26.06, but is much higher than the 52-week low of $16.25 set Dec. 21. Some employees believe the computer maker could be preparing to eliminate as many as 4,000 positions through a combination of outright job cuts and an annual performance review, beginning as early as next week. Every year, Dell's 36,000 full-time employees are ranked on a scale of 1 to 5 and each February, the company typically dismisses or places on probation any employee ranked in the bottom fifth. Amid the softest PC market in recent history, Dell has launched a price war in an attempt to pressure weaker rivals and grab market share. PC shipments last year rose just 9.2%, as home-computer sales slumped late in the year, according to market researcher International Data Corp. Dell, which records about $32 billion in annual revenue, is expected to report fourth-quarter results Thursday. In January, Dell projected a profit of 18 cents to 19 cents a diluted share, well below 25 cents a share expected by Wall Street analysts, though revenue is expected to rise 26% to $8.6 billion. This from a company that had been used to annual revenue gains of 50% a year up until fiscal 1999. Dell also warned that the price cutting would pare gross profit margins, or profits after manufacturing costs, by three percentage points from a year ago. Analysts believe fears of a recession are prompting U.S. companies to cut their computer budgets, putting new pressure on PC sales this year. David Bailey, an analyst at brokerage house Gerard Klauer Mattison, said new cuts at Dell would indicate that PC demand continues to sag. Many computer makers have signaled that they don't see demand perking up until the second half of the year, at the earliest. "I think this is not going to be viewed as trimming the fat, but as preparing for slower growth," Mr. Bailey said. Late last year, Dell advised its managers to scrutinize all costs, even asking them to return unneeded company-issued pagers. Dell also closed an online procurement business called Dell Marketplace. The business was launched in September and designed to allow Dell customers to buy and sell using Dell's electronic-commerce capabilities. Thursday, Spherion Corp., a Fort Lauderdale, Fla., staffing concern that supplies Dell with factory workers, said in a conference call that a large Austin customer, which analysts believe is Dell, has reduced its staffing needs by more than 1,200 employees a week. A Spherion spokeswoman declined to comment. ------------------ If I ain't dead already, girl you know the reason why... [This message has been edited by BrianKagy (edited February 09, 2001).]
Damn, Brian. Are you worried? I hope this doesn't effect you. ------------------ Me fail English? That's unpossible.
Me? Worried? Not at all. I'm in true head-over-heels love, I'm in a kick ass band that I enjoy playing with, I recently quit my two worst habits and I've taken up running again (so I am healthy at last!), I'm finishing my college degree as we speak, and I honestly think this is the happiest I've been in my entire life. A job's just a job. I'd be disappointed if I were laid off and I don't really want to leave Dell, but where I work and what I do there represents an increasingly less important part of my self-identification each day. ------------------ If I ain't dead already, girl you know the reason why...
Damn, you had me scared with that title. I thought you were announcing that you wouldn't be posting anymore. we miss BrianKagy!
I thought that you were announcing an engagement, or worse, moving away from the naked girls. ------------------
I'm not sure I like this nicer, happier version of BrianKagy. ------------------ "Knickerbocker Please!" visit www.swirve.com, coming January 20th, the top 10 films of 2000! http://www.geocities.com/clutch34_2000 for great Rocket insight by some of your fellow BBS posters!
Yeah, yeah, yeah... all anyone wants to know is... do you have stock options?! ------------------ "what if my aunt had balls?" -- in one fell swoop, bbs member verse expresses his dislike of "what if" scenarios and shows he has far too much idle time on his hands.
Hmmm, nobody here under 1200 posts. I think I'm out of my league here! ------------------ Dream a deadly Dream. . .
BK: That's cool. Maybe it is time to sluff off the corporate suit world and join the ranks of the disenfranchised and under-appreciated. Hmmmm. Maybe not. ------------------ Me fail English? That's unpossible.
Man, I am envious. For someone to be that content, and not be bothered by a potential layoff, is a real sign of true happiness. ------------------ "Of course, everything looks bad if you remember it!" Homer Simpson
President Duhbya better slam his tax cut in quickly. We will all need the extra money while we are standing in the unemployment line. ------------------ "Blues is a Healer" --John Lee Hooker [This message has been edited by RocketMan Tex (edited February 09, 2001).]
The "need" for the latest and greatest processing power has always been overrated; it's not something that just happened. The biggest reasons to upgrade your pc have and and still are : 1) New operating system. More bugs, more problems, more crashes, more space needed, more Microsoft!!! 2) Gaming horsepower. For the average user many of the newer 3D games tax the pc far more than any other application they own. I'm still trying to think what Dell will be doing in the next 5 years. Will they change their focus completely? The PC market is suffering with people (and especially corporations) not upgrading to the latest OS's from Mickeysoft and memory prices dropping like bricks (256 MB RAM for $63? Unreal!). I agree with mrpaige, this is more than an economy thing. Even when we start moving again (and the NASDAQ starts to shoot upward... *ahem*), the Dells of the world will have to continue to re-think their product to survive. The age of the PC was the 80's and 90's... I think we'll see that shift within the next 5-10 years (that's me trying to sound cool like those analysts that get interviewed by that Maria Bartiromo(sp?) chick... what a hottie!). ------------------ "what if my aunt had balls?" -- in one fell swoop, bbs member verse expresses his dislike of "what if" scenarios and shows he has far too much idle time on his hands.
Bingo! The reason the hardware business has been so good for so long is because not many Americans actually owned a computer or one that was close to up to date. Processing speed just doesn't fix things anymore. People want new and easier features and functionality from PC's and software does a better job of that than hardware. ------------------ Me fail English? That's unpossible.
I think he gave up smoking... but since we're so close to the New Year's I'm guessing his other resolution was to quit spilling his seed. ------------------
If they lay u off, just tell us that u quit. Lol ------------------ May I have another Snowball Clutch? Please may I? Ill be a good little mole.... I promise.
If they lay u off, just tell us that u quit. Lol ------------------ May I have another Snowball Clutch? Please may I? Ill be a good little mole.... I promise.
I just hope he didn't give up drinking. If you're going to be in a band, you at least have to either smoke or drink. You didn't join Stryper, did you BK? [This message has been edited by TheFreak (edited February 09, 2001).]
Stryper lives! Freak, that was great. I was thinking that BK gave up drinking and sarcasm. Both seem to be gone with his new peaceful,polite ,happy-go-lucky posts! Remember, sarcasm will always be with you. You let a little slip and then -- boom! -- you are in full force. ------------------ Big A, little a bouncing B, The System might have got you, but it won't get me.
