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Michael Dell, Dell’s chairman and CEO.  (Source: Dell)
Dell takes steps to save $3B USD over the next three years

Dell is continuing its efforts to cut costs and an Austin, TX desktop manufacturing plant looks to be the latest victim. As is the case with many U.S.-based companies these days, Dell will cut jobs and rely even more on overseas manufacturing "to restore the competitive advantage of the company’s operating model."

The Austin plant closure is a part of a five-point Dell growth plan which will focus on global consumer, enterprise, notebooks, small and medium enterprise and emerging countries. By removing the Austin plant from its portfolio, Dell hopes to make a sizeable dent in the $3B in savings that it hopes to realize over the next three years.

"We believe we have a $3 billion opportunity to drive both productivity and efficiency," said Dell CEO Michael Dell. "We’ve analyzed the business and opportunity, so we know -- without question -- where our priorities should be. And as we’ve reignited growth in our business, we’re taking deliberate steps across the company to improve our competitive position."

Dell's insistence on reaching thing $3B figure will also come at the expense of 8,800 jobs. This is in addition to the 3,200 employees that were removed from the mix during fiscal 2008 -- 900 of which came as a result of a Canadian call center closure.

Other cost-saving measures that Dell has already taken include the closing of its 140 Dell Direct Store kiosks across the U.S. To make up for the loss of the kiosks, Dell expanded its presence in big box retailers like Wal-Mart and Staples.

"We expect that these actions, along with the continuing rigor we’re applying to operating expense control throughout our operations, will result in an improved, world-class cost structure," added Dell CFO Don Carty.

Despite the outsourcing and layoffs, Dell is moving along quite swiftly with product development. The company recently leaked its future notebook plans including the Latitude XT2 tablet and the Latitude E4200 and E4300 notebooks. The company also revealed a new, low-cost Blu-ray option for the Inspiron 1525 notebook.

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Americans need jobs
By crystal clear on 4/1/2008 8:40:11 AM , Rating: -1
Dell gives a simple message to everybody in the USA-

"Turn out the lights. The party's over. We are in a recession,"

Blame it on the credit crunch or the low dollar or the economic slowdown or ultra high energy costs or cost of living or the recession & more.

Yes the bad times have come but these are times when American companies should be ...
in the job protection mode & not the job shedding mode.

They should approach the Govt to come up with a job protection plan.

Its better Govt subsidizes jobs/companies than pay unemployment insurance-

"people out of their jobs is bad for everybody".

This has got to stop ! .....enough of this going overseas leaving thousands unemployed.

Its not only DELL but from IBM to Intel to just any company of some repute.

RE: Americans need jobs
By napalmjack on 4/1/2008 8:46:46 AM , Rating: 2
They should approach the Govt to come up with a job protection plan.

I don't trust the government.

RE: Americans need jobs
By crystal clear on 4/1/08, Rating: -1
RE: Americans need jobs
By BansheeX on 4/1/2008 10:08:57 AM , Rating: 3
Managed trade agreements, overregulation, minimum wage laws, labor unions, welfarism, bad government monetary policy, and big government spending makes this all possible, and you want more of it? You don't know a damn thing about history or economics.

Back in the late 19th century, we were pretty much free of all of these things, and in the same manner that Hong Kong exploded while China around it sputtered, we had something called the industrial revolution. At no point in our history was economic freedom, living wages, charity, and real growth greater in this country than during this period. Technology progressed unimpeded and cleaner technologies came faster as a result. Private property rights settled pollution disputes.

Blame it on the credit crunch or the low dollar or the economic slowdown or ultra high energy costs or cost of living or the recession & more.

But what brought those about? You're blaming symptoms rather than the actual policies that brought them about. You think this arose out of some freakish flaw in the free market? Try again. After the tech stocks collapsed in 2000, we needed a small recession then in order to purge the market of those excesses. But nobody wanted to take their medicine, so Federal reserve chairman Greenspan manipulated interest rates down to 1% for an entire year, setting off massive artificial demand and subsequent speculation in real estate to keep the economy "growing" (spending). This incentivized all the malinvestment and the shadiest of shady lending you abhor and set up the inevitable bust we're having now. The government empowered federal reserve is the arsonist with the firefighting duties, and you sit there and blame the market like some stupid socialist. Government involvement has done nothing but increase in the last thirty years, and you act like that's the solution?

RE: Americans need jobs
By crystal clear on 4/1/08, Rating: 0
RE: Americans need jobs
By crystal clear on 4/1/2008 10:50:57 AM , Rating: 2
Add this to the comment-

* U.S. employers cut 63,000 jobs- Febuary according to Labor Department data released . That followed a loss of 22,000 jobs in January. December's job growth was only half as big as the government had earlier reported.

RE: Americans need jobs
By BansheeX on 4/1/2008 10:52:05 AM , Rating: 2
You act like the government has a magic wand to make everything better. You think forcibly appropriating money from someone else via taxes and then giving it back in the form of government wages solves anything? FDR tried that back in the great depression. It failed miserably.

The government borrowing or inflating destroys the value of existing savings (capital), and then they tax people's production via the income tax. Is it any wonder new jobs don't come along when no one has any money to start a business after the government takes or debases it?

Hello, Mcfly?

There has to be a solution to "jobs going overseas"-

Yeah, it's called letting the free market work and getting government small and confined to the things they should be doing. Government is the interloper, the leech. We are 50% socialist, and socialism DOESN'T WORK.

RE: Americans need jobs
By crystal clear on 4/1/08, Rating: 0
RE: Americans need jobs
By BansheeX on 4/1/2008 1:39:12 PM , Rating: 2
Companies like Dell etc exploit these millions of people in China/India, for their profits & at the same time send 8000+ Americans into unemployment.

China and India's middle classes are booming now as a result of a freer market. Their lives are improving leaps and bounds over previously miserable socialist systems. We can't even sell to ourselves anymore because we don't produce anything as a result of all the socialist blunders on our side that make American companies want to move production overseas in the first place. And while we have to borrow from them to go one these hatred-inciting misadventures in the middle east, they're investing and making deals all over the world.

Also, a decline in the dollar by definition makes the yuan appreciate relative to it. They will eventually be able to buy all of their own products which are currently going to subsidized, indebted Americans. The only exploitation being done is the master trickery by our government convincing them not to delink to our fading currency. We outsource Keynesian policies to their central banks and for a long time they've been buying into it.

Have you experienced poverty ?

Have you been homeless or starving ?

Of course no one wants poverty, but you're looking at programs for their objectives, and I'm looking at them from their results. Well-meaning government programs to help some almost always have the opposite result, because in order to get the money to help a few, they have to forcibly take money from others in order to give it to them. Not only is it morally corrupt, it is roundabout nonsense to create poverty while fighting it.

retend you didn't have an income tax, crystal. You suddenly became able to afford that second child you always wanted. You own our own small business and employ many people. Then I come to your house as a government official and tell you that there are poor people in the neighborhood and that the government has authorized me to take 33% of your yearly income and all luxuries you've worked hard to obtain in the name of stopping poverty (of course, some of that will go to my government income because stopping poverty is my job). I take your fancy food and replace it with rice and spam, because, after all, you can still sustain yourself on that. I take your TV, your computer, because selling those too could help feed a hungry person. All the sudden, you have to fire several of your employees to sustain your old lifestyle and support that second kid. If you don't, your child now has crappy eduction and might become a jobless bum himself as a result, especially after seeing the disincentive to work after what they did to you. See how socialism and coerced charity doesn't work now?

RE: Americans need jobs
By Ananke on 4/1/2008 1:48:18 PM , Rating: 2
Man, India is not and never been socialist, it is always been free market, recently also bacame democratic country.
China political system is totalitarian, but the economy is mixed - i.e. most businesses are free market agents. That's why the poverty at the streets.
Norway, Finland, and Sweden are very close to textbook socialism - now check which countries in the world have the best life standards.
I came form Europe, and I have seen a lot of political and economic regimes, please refer to historical facts, not what Hollywood propaganda. Hollywood is worse than Chinese brainwashing, really.

RE: Americans need jobs
By BansheeX on 4/1/2008 2:18:51 PM , Rating: 2

Go to 1950-1975. Socialist, well-meaning reforms had severe deleterious effects in India after they gained independence from British rule. Then they gravitated more to a free market and have been benefiting ever since.

And don't bring up freeloading European countries. They have no protection for that lifestyle and they benefit from medical and technological research done under free market systems, etc, etc.

RE: Americans need jobs
By TruthasIknowit on 4/4/2008 9:43:33 PM , Rating: 2
Everything comes at a price.

“As of 2007, total tax revenue was 47.8% of GDP, down from 49.1% 2006."
Income tax rates up to 56%; sales tax rates 6/12/25%
Unemployment between 4.5-20% (Depends on who you ask)

Income tax rates between 9-32% sales tax 22%
Unemployment between 6.6-16% (Depends on who you ask)

Income tax rates between 38-59% sales tax 25%
"The income tax in Denmark ranges from 42.9% to 63% progressively" per another source.

(Per the Danish government the world's highest tax rate is "improving efficiency in the public administration and decreasing the number of immigrants and asylum seekers")

Look it up.

"Nowadays, security guys break the Mac every single day. Every single day, they come out with a total exploit, your machine can be taken over totally. I dare anybody to do that once a month on the Windows machine." -- Bill Gates

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