Dell Inc has asked employees to consider taking unpaid vacation days or severance packages to help the PC maker cut costs.
In a memo posted to a company blog, chief executive Michael Dell also announced a hiring freeze and said the company would use fewer contract workers.
Jess Blackburn, a Dell spokesman, said on Tuesday that the new moves are intended to help Dell reach its goal of cutting US$3 billion in annual expenses over the next few years. Corporate spending on information technology is softening, as is consumer spending on PCs in developed countries.
“It’s no secret, we’re all living in times of economic uncertainty,” Blackburn said. “What Michael laid out yesterday is the first opportunity for employees to directly contribute to this effort.”
The Round Rock, Texas-based PC maker has already cut 10 percent of its global work force since last year. Blackburn declined to say whether Dell will slash additional jobs if the plan doesn’t lower expenses enough.
Michael Dell’s plan gives employees the opportunity to take up to five days off without pay during the company’s fiscal fourth quarter, which ends Jan. 30. Some key customer support workers won’t be eligible, Blackburn said.
The spokesman could not say whether the CEO was considering unpaid time.
Dell is also offering severance packages for people who leave the company voluntarily. Blackburn would not give any additional details.
Dell had about 88,000 employees at the end of its last fiscal year.
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