Dell downsizing: 350 employees take exit option
Showing clear signs of cutting costs by curtailing staff strength, information technology giant Dell has offered its employees to quit the company in exchange of forward salary for several months. As such, 350 of the nearly 1,000 of its staff at the SAS Nagar unit have opted for the "voluntary separation programme".chandigarh Updated: Feb 13, 2014 10:17 IST
Showing clear signs of cutting costs by curtailing staff strength, information technology giant Dell has offered its employees to quit the company in exchange of forward salary for several months. As such, 350 of the nearly 1,000 of its staff at the SAS Nagar unit have opted for the "voluntary separation programme".
The formula for the severance pay is: The company counts the number of years that you have completed in the job, and then multiplies that number by two; you then get salary for that number of months (not years). For instance, if you have worked for five years, you will get severance basic pay for 10 months.
Dell officials said they were following the company's global policy, and they rejected all speculation of the company shutting down or shifting its centre at SAS Nagar. Ajay Arora, senior manager, corporate communications, Dell India, said, "The voluntary separation programme is globally opted, and we are not shifting anything anywhere."
Buzz in online media and several technology websites termed it a "cost-cutting measure". One of the Dell employees on the condition of anonymity said, "It is a smart move by the company, and around 350 workers have opted for the offer. But we were not forced to opt for the programme."
"I opted for the programme as there are strong rumors that the company is winding up its operations from SAS Nagar, and shifting this unit to Gurgaon. Later, we may not even get job at another company," said another employee.
As per popular technology website news.dice.com, "the company has announced what it's calling a 'voluntary separation programme' intended to weed out those who don't share Dell's passion and enthusiasm".
The SAS Nagar Dell centre for international services was launched in 2005 and provides services like consumer tech support and customer care for the United States. Dell International Services is the support and services division of Dell and has operations in India, Europe, Latin America, Africa and the Philippines.