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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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Moving swiftly?
By aos007 on 4/1/2008 11:57:35 AM , Rating: 2
quote:
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. 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.


I think it's quite the opposite. Lattitude E seriers were first "leaked" in January and recently we found out that they are due in September - and that only tentatively. They aren't even sure they'll hit the target (e.g. roadmap mentions "target weight" instead of just "weight" - a long way from completion, I'd say). Looks like big-time catchup to me. It's like Dell has no idea what the market wants (especially high end market) and is reacting rather than proacting. I can't see how "quite swiftly" applies. Besides, with these layoffs there is bound to be an impact on timelines and we'll be lucky if E launches before US Thanksgiving.




RE: Moving swiftly?
By Sazar on 4/1/2008 2:55:01 PM , Rating: 2
Not quite true.

I have already seen pre-prod samples and they are quite snazzy and relatively light-weight compared to other similar products. I think when you see the features available, you'll be mildly surprised.

Also, they are supposed to drop for testing purposes in June/July, at least per their CFI people whom I work with. Ergo, I am not sure if it will slide to September, but I have a feeling that it may now be quite that long :)

There are definitely some things that the blackberry loving business travellers will CRAVE that no one else has.


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