Dell Offers "UnPaid Leave"

I'm pretty sure this will not get listed in the "employee benfits" brochure.

Computer maker Dell (NASDAQ:DELL) has asked employees to consider taking up to five days of unpaid leave as it struggles to cut costs in the face of weak global demand.

The number two computer maker, which is near its announced 8,900 job cuts, is also offering voluntary severance packages and has instituted a global hiring freeze. CEO Michael Dell announced the moves in an email to employees on Monday. On Tuesday he said he expects further consolidation in the technology industry, and encouraged companies to ride out financial turbulence by focusing on hard returns, rethinking businesses and investing.

“Being stunned into inaction is exactly the wrong thing to do right now,” he told a conference in San Francisco, adding that the company was investing in so-called cloud computing to deliver services over the web. At the same time, Dell aims to cut operating expenses in its fourth quarter, said company spokesman Jess Blackburn. “The intent is to better position Dell for long-term competitiveness,” said Mr Blackburn. “We are asking employees on a voluntary basis to consider taking off [up to] five days . . . as unpaid time off as a flexible way to reduce costs for the company.”

Employees are being asked to take the time off in the next three months. Dell wrapped up its third quarter on October 31. Its fourth quarter began Monday and ends on January 30, 2009. Dell, the world’s second biggest computer maker behind Hewlett-Packard (NYSE:HP), has seen soft global demand for personal computers because of the economic downturn. The company reported a steep dip in second quarter profit in August and said it would sharpen its focus on increasing market share in emerging markets such as India.

How far have the late 90's high flyers Dell and Yahoo (NASDAQ:YHOO) fallen.