Dell offers unpaid time off, voluntary separation
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Dell hopes it can better weather the economic storm by implementing a number of new cost-cutting measures, including an enhanced severance package for employees who voluntarily leave the company.
Employees will soon be able to apply for a voluntary separation plan under which they can leave the company and receive a severance package that is better than Dell's regular offer, says David Frink, a Dell spokesman.
In addition, Dell is offering employees voluntary unpaid time off from one to five days during the company's fourth quarter, which stretches from November through the end of January.
The company also plans to reduce the number of contractors and temporary employees on its books, but Frink declined to say by how many.
Dell has also put a short-term hold on global hiring, he says.
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 reprioritised some projects and spending, and reduced travel budgets across the company, Frink says. It will also reduce outside-services spending on non-critical projects, he says.
The moves follow a decline in profits but an increase in revenue for Dell's fiscal second quarter.
