Dell Issues Incentive for Employees to Quit

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In an effort to battle the struggling economy and cut costs, Dell is taking measures to reach its goal of cutting $3 billion annually. In order to accomplish this Dell has issued a 4th quarter 2008 hiring freeze as well as stating that the company would use fewer contract workers.

The company is also encouraging their workers to take an additional 5 days vacation without pay during the holidays. In an effort to downsize without laying people off, Dell is also offering severance packages to people who leave the company voluntarily.

Bad times call for extreme measures, but I’m still torn on the way Dell is dealing with it all. Won’t it just decrease the quality of workers while enabling all the entrepreneurs to leave and start their own companies? Just a thought.