Dell cutting costs by eliminating bonuses and reducing management

Dell cutting costs by eliminating bonuses and reducing management

Michael Dell recently announced his decision to take over the CEO position in the company. Dell has lost its number one position in the personal computer market to Hewlett Packard and the company is facing number of challenges to stay profitable in the market.

Media sources claim that Dell has sent a memo to the employees in the company saying that the company would eliminate bonuses and reduce management to cut costs.

He further said that he would be staying with the company “for the next several years.” And they currently have no plans to hire a chief operating officer.

The message further said: “We had great efforts, but not great results. This is disappointing and it is unacceptable.”

Dell is also currently facing an investigation by the SEC for possible accounting improprieties.

Dell further said that the bonus plan would be replaced by “limited discretionary awards” that would be available to all but senior management.