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Technology Stocks : Dell Technologies Inc.

DELL 120.07

-0.3%

10:53 AM EST

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To: TigerPaw who wrote (165173)	5/8/2001 9:38:06 AM
From: rudedog	Read Replies (2) of 176387

TP - as I said with the first round of cuts, it is not the cuts themselves that concern me - that is a requirement of prudent management if the cost structure is out of line - but the flip-flop of management comments about the issue. A friend who is a DELL executive had an even more pragmatic view on the current policy - if DELL uses low performance evaluations and other disincentives to get employees to leave voluntarily, then DELL does not have to pay severance - yet another "cost saving" in the efficient DELL model. Interestingly, on a percentage basis, DELL's cuts are larger than Compaq's. Is it possible that DELL has found a way to be even more efficient in production, thus requiring fewer people to do the same work? Or do they really see demand falling off by 15% to 20% as the level of cuts would suggest?

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