Dell's new Structure

Dell Computers has always been a major power house in the world of computers, but recently they have been sending some of their top employees out the door, jobless. In the years since the recession started, Dell has decided to get rid of some major jobs, add new technology to the mix, and try even harder to keep their name on people’s lips.

Last year, Dell had revenues of $61.1 billion with an income of $51.1 billion, and revenues have jumped up this year to $62.1 billion. They are also known to keep very low inventory levels to save costs for costumers and keep technology relevant.

Dell’s bestselling products now are X86 based servers. They have the number 1 market share in the United States and 2nd world-wide, and its growing that market share every quarter. Last quarter, market share in servers grew 3%, According to Direct2Dell, the company’s corporate blog. Dell still feels the need to accomplish more.

“The company is every changing,” Dell’s former Vice President of Global Sales, Paul Carney, said. “It started out as simply a PC company. Now it is moving rapidly to diversify into servers, storage, networking and software. Its biggest change is the software business which Dell wasn’t in before. This business brings higher margins than hardware.”

Paul was recently laid off from his job as Vice President of Global Sales because the company is drastically adjusting their organization to meet the demands of the market. “That means that sometimes jobs are no longer needed or they redistributed organizations to other areas which eliminate the need for some leadership,” Carney said.

The new reorganized global business structure that Dell decided to use, calls for restructuring and for management changes that will move things around for its global business.

“The new reorganization comes as the computer maker has announced that it is reorganizing its business globally around three major customer segments – large enterprise, public sector and small and medium businesses,” Dell salesman Tiel Jones said.

Each group will possess greater global accountability and responsibility for responding to customer needs and leading industry change. Michael Dell, chairman/CEO, attributed the changes as a response to customer desire “for faster innovation and globally standardized products and services.”

Dell has been offering many high paying positions around the company, like VP’s, payment deals if they will leave the company peacefully. Besides Paul, the President of Global Operations, Michael Cannon, and CMO Mark Jarvis will leave their posts.  The company has agreed to pay these three men their full salary until the end of next April.

It is very strange for a successful company to start firing their most efficient employees, especially since they are making more money than they ever have. “They are not technically downsizing,” Jones said. “They are organizing appropriately to meet new customer demands. That means sometimes that jobs that used to be needed are not anymore, but they are adding people to certain areas of growth, like software.”

Dell’s organizational structure plays a crucial role in development and market performance. As any company, Dell Corporation must look for new trends in business development.