Blood lust is such an attractive trait on Wall St. A hardware analyst at Bernstein Research wants Dell (DELL) to cut 15% of its employees. More to the point, 13,124 of Dell’s employees are "excessive". You can’t get more detailed than that. Bernstein points out that the number of employees at Dell are up over 49% during that last two years but revenue is up just 7%.
It would be easy to put the blame for all of this at the feet of sacked Dell CEO Kevin Rollins. But, perhaps Michael Dell and the balance of his board had access to these numbers. They are fairly basic "metrics" as corporate types like to call them.
Michael Dell is now at the bottom of a hole of his own digging. He was the company’s chairman and a member of the board. As the founder, he might even be considered the de facto CEO over the period. It is likely he could have moved Rollins out at any time.
If Dell gets ride of 13,124 employees, he should stand at the door, give each one a check, and say he is sorry.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies he writes about.
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