Dell Technologies plans to cut jobs this week as a cost-saving measure, according to a Bloomberg report.
Citing a person familiar with the situation, Bloomberg reported that COO Jeff Clarke told staff during a quarterly meeting that workforce reductions won’t be limited to a particular team or division within the company.
A Dell spokesperson declined to comment on how many jobs the company plans to eliminate.
“We’re also evaluating our business to make sure we have the right number of team members in the right roles and in areas where customers need us most,” the spokesperson said in an email to SDxCentral. “And, we’re addressing our cost structure to make sure we’re as competitive as we should be now and for future opportunities. While we do this type of organizational review regularly, and while it always results in some job loss or restructuring, we recognize that there is nothing routine about today’s environment.”
The spokesperson said that employees learned about this on Monday. “Every decision we’ve made up to this point is to make sure we’re doing what’s best for the long-term health of our company and our team,” the spokesperson said.
Dell and other data center infrastructure vendors continue to face weak demand due to the COVID-19 pandemic and remote workforce. In earlier efforts to cut costs, Dell suspended 401(k) matching and promotions for the fiscal year.
On Dell’s earnings call late last month, Clarke said he expects about 60% of the company’s workforce to stay remote or only come into an office one or two days a week. And during the Monday all-staff meeting, Clarke also provided more details about the company’s remote-work plan, according to Bloomberg.
VMware Considers Pay AdjustmentsDell will allow employees to work from home as much as they would like, from one to five days a week post-pandemic, with manager approval. And unlike VMware, which is 81% owned by Dell, the parent company isn’t making any adjustments to compensation “at this point in time,” based on location or remote-work, Bloomberg reported. It will provide a one-time stipend of $400 for home-office equipment.
While Palo Alto, California-based VMware has told its employees that they can move away from the Silicon Valley and work remotely on a permanent basis, it may cut their pay should they chose to move to a less expensive location.
Rich Lang, VMware’s senior VP of human resources, told Bloomberg that the company adjusts salary based on the “cost of labor” in different regions.
Employees who worked at VMware’s Palo Alto headquarters and move to Denver will take an 18% salary reduction, while moving to Los Angeles or San Diego will come with an 8% pay cut, Bloomberg reported, citing sources who asked not to be identified discussing internal policies.
A VMware spokesperson declined to comment on the specifics from the Bloomberg report.
“Through our Future of Work initiative, VMware is building a dynamic, global workforce of the future where our people have choice and flexibility to work from any location that accelerates their productivity to deliver the most innovative solutions for our customers,” a spokesperson said in an emailed response. “Our program is designed to empower our employees with the information to help them make decisions should they desire to relocate. VMware is dedicated to equitable pay for its workforce, not by only race and gender, but also work location or geography.”
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