Dell Cutting Workforce With Voluntary Employee Buyout

Dell has aimed to cut its workforce by offering what it is politely calling a "voluntary separation program," which is a gentle way to say they're looking for employees to voluntarily jump the ship. The offer is coming in conjunction with a buyout package, of which the incentives have not been detailed, though the Wall Street Journal reports that it has reviewed the materials.

Notice about the program was sent out to Dell's employees earlier this week, and gives them until December 20 to decide if they want to accept the buyout and part with the company. Details have been provided to the employees, but specifics haven't yet become available to the general public. This is a "gentle" way to reduce the company's workload without having to layoff workers.

Said a spokesperson for the company, David Fink, "A critical element of our strategy has been, and always will be, about improving our cost structure and freeing up capital to make the investments in growth areas that matter to our customers." He didn't offer up any more information than this, however, leaving the rest up to waiting and speculation.

How effective will the program be? That likely depends on what Dell is offering as part of the buyout. The biggest question, perhaps, is what will happen if the numbers Dell is hoping to see doesn't emerge. Will the company then proceed with a layoff to further cull its workers? The spokesperson declined to comment on this particular matter, and Dell workers seem to have been left in an unfortunate limbo this holiday season.

SOURCE: WSJ