Rumor has it that Dell intends to lay off a substantial portion of its workforce in what is shaping up to be the company’s largest cost cutting sweep since going private last September. Citing two sources familiar with the matter, British tech publication The Register reported on Monday that the struggling hardware maker is preparing to axe more than 15,000 positions, or approximately one in seven employees worldwide.

If the anonymous tipsters are to be believed, the downsizing will kick off this week and cuts will be made across all units, including engineering teams. Workers issued pink slips will be eligible for two months’ salary, an extra week of pay for each year at Dell and a 75 percent bonus, as well as COBRA health insurance for 18 months and outplacement services if they’re in the United States.

Additionally, internal emails leaked to The Register suggest that sales and support operations will be consolidated “under a single umbrella,” and that the company will focus on “simplifying client support structure – both basic and up sell.”

Dell is disputing the report. Director of corporate affairs David Frink dismissed the layoff figure as inaccurate, but confirmed that the vendor is restructuring its operations.

“Your story this morning reporting that Dell is laying off 15,000 employees this week/imminently is wildly inaccurate. I can confirm that a very small percentage of Dell’s global team members accepted the company’s recent offer of a significant severance package associated with a voluntary separation program,” Frink wrote in a statement.

“It is accurate that we’ve taken steps to optimize our business, streamline operations and improve its efficiency over the past few years,” he added. “And, as any prudent business, we’ll continue to review our operations in an effort to remain competitive and best serve customers.” Dell is refocusing on software and enterprise services in a bid to reduce its dependence on the shrinking PC market.