Dell to cut bonuses, trim management

by admin February 5, 2007 at 9:36 am

Days after returning to the helm of the computer maker he founded, Michael Dell told employees in a memo that the company would eliminate bonuses and reduce management to cut costs.

Michael Dell, who returned to the company as chief executive officer Wednesday after the resignation of Kevin Rollins, also said in the e-mail Friday that he planned to stay with the company “for the next several years.” He also announced that the company would not hire a chief operating officer.

“We had great efforts, but not great results,” Michael Dell wrote. “This is disappointing and it is unacceptable.”

The announcements come after a terrible year for the computer maker, during which it lost its lead in PC market share to Hewlett-Packard and an investigation by the SEC for possible accounting improprieties began. Several executives have left the company in recent months, including CFO Jim Schneider, who was slated to leave the company at the end of January.

Full story: ZDNet News