Dell looks for huge cuts, Michael Dell keeps his salary


Michael Dell needs to get his story straight. He recently said that Dell's (NASDAQ: DELL) sales were doing well in China and the Middle East. Investors should look at that as a good sign.

Now, the CEO of the No.2 PC company says his firm needs to make really big cuts. According to The Wall Street Journal, "The company is imposing a hiring freeze, offering employees voluntary buyouts and asking workers to take one to five days off without pay." The "without pay" thing seems a bit bizarre for a company that is still profitable.

Based on information from last quarter, Dell had $8 billion in cash and made $784 million in net income.

Dell is asking a lot of the people who are still with the company after several rounds of restructuring. The company's founder and CEO is not doing anything to pitch in. Not only is he a billionaire, but according to the firm's last proxy, he made $2.3 billion.

Dell got his company into trouble by overbuilding manufacturing operations. He can afford to take $1 a year so that the people he is asking to do more feel that he is in the trouble with him.

But he did not cut his salary one penny.

Douglas A. McIntyre is an editor at 247wallst.com.

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Last updated: February 10, 2012: 04:21 AM

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