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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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America Loosing Jobs
By Rokspidr1 on 4/1/2008 10:33:56 AM , Rating: 2
The downfall of the American job market began many years before any of us were alive. Unions, whether it is in Automobile business, trucking, or shipping, have caused the American economy to decline for many years. This along with our appetite for money at any cost. The automobile industry has driven, no pun intended, the American economy for decades. The control the Unions have over the Automobile assembly has caused revocable turmoil. Why does a person that is laid off from a union job still receive benefits for the rest of their life? The cost of this burden being placed on the BIG 3 motor companies is astronomical. Along with this, is the pay the union demands for someone to turn a wrench. Please don't misunderstand. I believe strongly a person should be compensated fully for the job they are performing.

The rising costs incurred by the BIG 3 are directly linked to their layoffs. Those layoffs are directly linked to other companies’ layoffs. And those layoffs are directly linked to the enormous inflation rates we have in this country and are not shared in other countries to the same degree. Opening our trade lines to other countries so freely has been the demise of what was once a great country. This act should have been handled completely different and in a more control fashion. How do we stop the world from taking over our country? It is up to us as proud intelligent Americans to do so. We need to stop always be thinking of how we can line our personal pockets, but also consider how we can line the pockets of our children and their children.




RE: America Loosing Jobs
By JustTom on 4/1/2008 11:37:04 AM , Rating: 2
You do realize the Great Depression was created by restrictive trade policies?

quote:
And those layoffs are directly linked to the enormous inflation rates we have in this country and are not shared in other countries to the same degree


The United States' inflation rate was 2.7% for 2007, which is hardly astronomical.

While union contracts have some of the blame for the decline of the American automobile industry perhaps, just perhaps, more of the blame should be placed on bad management, stale designs, and lack of vision.


"Mac OS X is like living in a farmhouse in the country with no locks, and Windows is living in a house with bars on the windows in the bad part of town." -- Charlie Miller














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