Thread regarding Dell Inc. layoffs

Where is the logic

Regardless of our opinions I’m curious how anyone in leadership would think letting go a person with 10 plus years of sustained success making $300k hitting their numbers of 20 plus million a year and has the customers respect to then replace them with a younger cost controlled maybe $100k person without the knowledge to be successful. Now that 20 million is 2 million along with an unhappy customer. The new rep is not seeing success so they will leave as well so the total investment is lost. I struggle to see the logic.

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Post ID: @OP+1qNuRJaU

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@2tzf+1qNuRJaU, exactly. I've been saying the same thing on this site but people don't seem to get it (as they apparently have no clue).

"Leadership isn't making decisions on who gets let go. I was a L2 manager before the layoffs in Aug and me, my peers and my director had no idea who would be laid off or why. We were just given a list of names and told to do HR training to learn a few lines in a script to offboard them within the week."

VP and SVPs took the decision in our case.

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Post ID: @2nzg+1qNuRJaU

New rep is a sunk cost. Accounting logic and maybe AI or some algorithm says Dell will make money with the removal of both reps in your example (along with many others) as their stock prices hit new highs.

Leadership isn't making decisions on who gets let go. I was a L2 manager before the layoffs in Aug and me, my peers and my director had no idea who would be laid off or why. We were just given a list of names and told to do HR training to learn a few lines in a script to offboard them within the week.

The VP had the list of names before hand, but I don't think they were involved in the decision making.

The rumours are that AI are making the decisions, but Dell is too cheap to pay for an AI to do that. My guess is they're looking at spreadsheets with cost per badge IDs vs territory size, current gross profit and forecasted gp, then axing ppl thinking that younger reps making way less money can handle it, in conjunction with the channel.

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Post ID: @2tzf+1qNuRJaU

Dell’s business model is to pinch every penny. They are ruining EMC by forcing them to follow the cheap business model. Skimp on r&d, support, and services… make all your money on supply chain management…. Squeeze every penny out of your people…

They will probably survive long term but it will be will low rent products with good products available through partnerships.

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Post ID: @1feo+1qNuRJaU

So they can hire twice as many people in India, and still save money.

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Post ID: @1dgh+1qNuRJaU

You are missing the big picture of AI replacing majority of the decision making on data .
I am not talking about one particular area liks sales etc.
I agree that the scope of AI replacement is not determined, but I am sure the big boss wants to understand the gap generated and then based on data create AIops.

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Post ID: @1pxb+1qNuRJaU

300k isn't unheard of. I don't know many that were making under 250k at Dell in 2022 if you were an AE, DCSE, SPS, or any speciality team (APEX).

My whole team that was laid off on the last WFR made over 350k. Many in the 400-500k range. Also most of us had a large quota/responsible for bringing in 50-80 million a year for the company. You want the higher pay it demands bringing in more money for the company.

The only positive thing was that everyone from that team had a new job nearly the moment they announced their release.

Competitors are always watching who they lose deals to and ...well...That's the thing...sometimes "Dell's trash is another company's treasure"

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Post ID: @ywd+1qNuRJaU

Welcome to big mediocre tech companies. Almost Anyone can be replaced. Unless you are the sole engineer who designed a platform that only you know you are replaceable. It's a tough pill to swallow. Even if the account is lost $20 million is a drop in the bucket and the company would have to lose 50 more to even make a substantial long term dent. Let's be honest after investing 20 million is a customer really going to jump ship because their rep got let go. Possible but unlikely as there is a cost of change and not many companies offer a great customer experience. Combine the all too common frantic and wide spread incompetence of senior leadership it's more likely the best employees will be let go and the folks who pretend to execute impossible and irrational short term doomed initiatives will stay. Your best bet is to job hop or get promoted.

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Post ID: @wyo+1qNuRJaU

The logic is, they are going to try and get rid of people and pile more accounts onto existing salespeople.

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Post ID: @jgl+1qNuRJaU

Who is on 300k?
If you are then you are part of the problem and need to go.

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Post ID: @aem+1qNuRJaU

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