Dell slashes bonuses, managers
By ASSOCIATED PRESS
Published February 4, 2007
DALLAS - In a memo to Dell Inc. employees days after returning as chief executive officer, Michael Dell said the beleaguered computermaker is quashing bonuses for 2006 and reducing managers to help cut costs and steer the company back toward dominance.
The e-mail sent Friday also revealed that Dell will not hire a chief operating officer, will push faster product development and will expand into new business.
In exchange for not giving bonuses for 2006, Dell said the company would budget for "above-market raises" this year and readjust the targets for bonuses. In its executive ranks, the number of top managers who report to Dell would be streamlined from more than 20 to 12.
A copy of the e-mail was obtained by the Austin American-Statesman for its Saturday editions and was posted on the newspaper's Web site. Dell spokesman Bob Pearson verified that the e-mail was sent out Friday.
[Last modified February 4, 2007, 01:29:20]
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