Home / Dell to tighten purse strings

Dell to tighten purse strings

Computer giant Dell is axing bonuses and streamlining its management structure in an effort to cut costs, CEO Michael Dell told sAtaff in an internal memo last week.

In the memo, obtained by the Austin American Statesman and later confirmed by the company as genuine, Dell blamed "bureaucracy" for costing the company money and slowing it down.

While Dell said "thanks!" to his staff for their hard work and sacrifices over the past year, he added: "We had great efforts, but not great results. This is disappointing and it is unacceptable."

As a result, the firm is not issuing bonuses this year, Dell said, instead giving "limited discretionary awards" that will be available to all but the most senior management.

Numbers of that latter group look set to be trimmed, with the current 20-plus senior managers that report directly to the CEO being cut to 12, Dell said.

The changes come just days after Dell resumed the role of CEO following Kevin Rollins' resignation last week. In the memo Dell confirmed that he planned to hold the CEO role for several years.

The firm is further ringing the changes to help revive its business, with Paul Bell being recalled to take charge of its ailing Americas business.

Bell has headed the EMEA operations for seven years, and sales there have continued to increase.