One of my friends told me today that Dell has been laying off employees by the droves. Some of them have been hired a few weeks ago.
Well, the only thing one can conclude is that various divisions in this "esteemed" firm are operating asynchronously. Just as the HR dept continues to hire freshers from college campuses, the same HR dept. also issues notification of termination of employment. well, it is obvious - not only is the HR messed up, but so is the top management strategy which is totally devoid of any coordinated effort. The CIO decided on a new strategy and goes on a firing spree, to satisfy blood-thirsty fund manager investors who call for cost cutting.
Too much importance is often attributed to the role of the top management teams. Maybe the reality is that top management does have an enormous impact on a firm's fortunes. However, the top management is often acting in self-interest, moving from one firm to another, optimizing on a short time frame while th real benefits actually lie in long-range planning.
It is not enough to cut-costs. Dell has probably efficiently picked up all the low-hanging fruit just too easily in an industry messed up with legacy-system probems. Now, the real growth can only come through good products and a consumer focus. To achieve this, Dell does not have to cust costs. It needs to focus more on R&D and focus on developing consumer-friendly products not shoddy laptops which break down within a year.
Dell has shown its cheap mentality, one that is driven by short term optimization that reflects top management interests and not the real interests of shareholders and employees. It is a shame that the exuberant market even rewards it.