Here in Poland, at the Łódź manufacturing facility, the workload has been quite low lately—I would even say there is practically no work, especially on progressive lines and Line L1, where the vast majority of components are routed upstream to departments L3 and L4 (server production).
On Wednesday, a massive wave of layoffs hit two shifts, letting go of a significant number of agency workers. As a result, the total headcount was cut almost in half. To retain valuable personnel or certain individuals of interest, management is reassigning them to other departments where work is still available.
My question is: Is the situation the same at other Dell sites, or is it different elsewhere?
10 replies (most recent on top)
ISG How is currently at 50% of target. Target was probably over inflated but still. Not good.
memory and drives supply chain is constrained .. no parts , no production, no reason to retain contract staff until supply recovers. It’s a global issues across all server OEMs
@df We produce desktops like Alienware and other workstations, as well as servers, all-in-ones, and micro PCs.
All I know is that everything is backlogged
What exactly are you manufacturing in Poland? This could give a clue as to what is happening. Maybe transferring operations to lower cost locations? But, again, what are you manufacturing in Poland.
As far as we were told in the CSG Q3 field trainings, the company is already seeing a significant market contraction for desktop clients, and this trend is expected to continue in the future (at least this was the info for EMEA, but I assume it's not just a regional trend).
So probably, as usual, they start layoffs to anticipate the savings, and will partially fall back in case the estimate was wrong or the trend changes.
@OP I’m going to guess. Our now inflated pricing, well above our competitors, apparently they have stock, which we don’t (Dell - best supply chain in the industry). Over and above all this the 96B of AI backlog. No rush on them, not as yet any data centres to host them or any actual workload requirements. AI over inflation!
It’s all over the news AI is being shutdown. It’s falling apart quickly.
@a2 Spot on that's why everyone here is worried. If there's supposedly a huge backlog, why are they cutting assembly line staff in half instead of shifting people or ramping things up? Something doesn't add up.
Given that Dell allegedly has an order backlog for AI related hardware, that doesn't bode well for the site.