Dell to axe over 1000 jobs in India, shutter Mohali offices

By Friday, August 23, 2013 1 , , , Permalink 0

According to our sources inside the company and those familiar with the current restructuring, as many as 1000 Dell employees could be facing the axe in the next six months – mostly those based out in Mohali.

The sources revealed that the entire base at Mohali may be shuttered, which currently houses over 1200 personnel. Around 1000 of these employees would be shown the door while the remaining lucky ones will be shifted to other operations within the company it has been revealed.

Dell’s Mohali base accounts for over 12 per cent of the total employee strength, which as our sources indicate, stands at around 10,000. Dell has offices in Bangalore, Gurgaon and Hyderabad. It is believed that the downsizing in India could be the results of global restructuring efforts underway – one of the reasons being the steep decline in PC shipments over the last year.

The decline in PC sales has greatly affected Dell as its second quarter for the 2013-14 fiscal registered nearly 72% decline in net income. Further Dell’s revenue also flatlined at $14.5 billion year-on-year.

On top of the declining PC sales, the company is also facing tough times because of the privatization battle between Carl Icahn and Michael Dell. Icahn recently bought 4 million extra shares of Dell while also suing Dell and its board in a bid to foil Michael Dell’s buy out attempt.