Dell offers unpaid time off, voluntary separation

05.11.2008

Dell is not providing a monetary figure for the savings it expects to realize from these moves, nor a savings target that it might be trying to reach, he said.

CEO Michael Dell outlined the plan in a memo he sent to employees on Monday.

In addition to the changes to its workforce, Dell has reprioritized some projects and spending, and reduced travel budgets across the company, Frink said. It will also reduce outside-services spending on noncritical projects, he said.

The moves follow a decline in profits but an increase in revenue for Dell's fiscal second quarter. Economic woes in the U.S. and western Europe were a drag on its earnings, Dell said at the time.

Dell has just about finished laying off 8,800 workers, as announced in May 2007. The current cost-cutting plan does not include further layoffs, Frink said.