Dell to Cut Spending and Management

By Digital Trends Staff February 5, 2007

Not only is Dell getting sued by the SEC and its shareholders; newly self-appointed CEO, Michael Dell has begun cutting back on spending and management and creating "Dell 2.0."

In its executive ranks, the number of top managers who report to Dell would be streamlined from more than 20 to 12. "We have great people… but we also have a new enemy: bureaucracy, which costs us money and slows us down," wrote Dell.

These announcements come after former CEO Kevin Rollins stepped down last week and Founder, Michael Dell, decided to take over the helm who plans to stay with the company as CEO "for the next several years."

After losing its first place ranking in the PC market industry to HP, Dell has been seen scrambling to retake its lead. In 2006, Dell started growing slower than the market, the first time that has happened since the company started back in the mid-1980s. HP overtook Dell as the largest PC manufacturer midway through 2006. Dell fell short of that $60 billion target during its 2006 fiscal year, with $55.9 billion in revenue.

Read the e-mail in its entirety at the Austin American-Statesman.

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