Corporate axeman visits Dell

shining_2380857bSoon after the ink dried on the EMC Dell merger, the ruler of the new companies, Michael Dell has called up the corporate axeman to slice up those who are not worthy to be in the new kingdom.

Dell will cut 2,000-3,000 jobs, mostly in the United States and mainly in the supply chain, marketing and general and administrative divisions.  Actually it could be a lot worse. the combined company has 140,000 employees so 2-3000 people is just a drop in the bucket.

The figure comes from Bloomberg which is quoting its own deep throats. The figure strikes us as a little low.

Dell spokesman Dave Farmer said that it is common with deals of this size, there will be some overlaps we will need to manage and where some employee reduction will occur.

We agree, which is why we think the 2-3000 figure is either the first wave or the most obvious duplications.

Dell, which was taken private by founder Michael Dell along with private equity firm Silver Lake Management in 2013, agreed to buy EMC for $67 billion in October last year.