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With Dell Back at Dell, Changes Afoot

By: Associated Press
By: Associated Press

DALLAS (AP) - Days after returning as Dell Inc's chief executive officer, Michael Dell told employees the beleaguered computer maker
is quashing bonuses for 2006 and reducing managers.

The e-mail sent Friday says the move is to help cut costs and steer the company back toward dominance.

It also revealed that Dell will not hire a chief operating officer, will push faster product development and will expand into new business to drive revenue growth.

Details of the shake-up came after Michael Dell replaced Kevin Rollins as CEO.

The change comes as Dell tries to fix mounting problems that include a string of disappointing earnings, eroding market share and an ongoing federal accounting probe.

A copy of the e-mail was first obtained by the Austin American-Statesman and posted on its Web site. Dell spokesman Bob Pearson verified that the e-mail was sent out Friday, but he would not provide a copy to The Associated Press.

In it, Dell wrote that the company ended its fiscal year Friday with "great efforts, but not great results."


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