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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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RE: Americans need jobs
By crystal clear on 4/1/2008 11:45:19 AM , Rating: 0
We are 50% socialist, and socialism DOESN'T WORK

I do not wish to discuss the pros & cons of Free Market or Socialism.

Just take a trip to India or China & see for yourself what life is on the streets/slums.
(I travel frequently to that region)

Companies like Dell etc exploit these millions of people in China/India, for their profits & at the same time send 8000+ Americans into unemployment.

Your views are good on paper but in practice not feaseble.

Were you ever fired & unemployed for say 6 months,to get the feel of what life is ?

Have you experienced poverty ?

Have you been homeless or starving ?

We are all human beings - We all want to live a decent life.

Pls do not take it as a personal attack on you-I enjoyed discussing with you.

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.

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