Michael Dell Sends Cost-Cutting Missive
Michael Dell is wasting no time in telling Dell employees what the company needs to do to improve its sagging performance. After returning Wednesday to the CEO position at the PC company he founded, Dell sent an email to workers on Friday saying he will cancel 2006 bonuses and reduce managers.
In order to cut through bureaucracy at the leadership level, he wrote that the number of managers reporting directly to him would go from more than 20 to 12. To make up for the lost bonuses, Dell wrote that “limited discretionary awards” would be available to some workers, and that the company would budget for “above-market” raises this year. “We have a tough couple of quarters ahead,” Dell wrote. “We didn’t get here overnight and we won’t fix things overnight either.”
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