Dell Asks Employees to Take Unpaid Time off

Hiring freeze at Round Rock Computer Maker

Dell has asked employees to consider taking unpaid vacation days or severance packages to help the PC maker cut costs.

Chief Executive Michael Dell also announced a hiring freeze and says the Round Rock-based company will use fewer contract workers.

Details are in a memo posted to a company blog.

Spokesman Jess Blackburn says the new moves are intended to help Dell reach its goal of cutting $3 billion in annual expenses over the next few years.

Corporate spending on information technology is softening, as is consumer spending on PCs in developed countries.

Michael Dell's plan gives most employees the opportunity to take up to five days off without pay during the fiscal fourth quarter, which ends Jan. 30.

Dell is also offering severance packages for people who leave voluntarily.


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