backtop


Print 61 comment(s) - last by CorporateSlave.. on Apr 5 at 9:30 AM


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.



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

RE: April Fools?
By rum on 4/1/2008 12:31:22 PM , Rating: 2
Wow get rated down because your so called economists and fiance say differently than I do??

Gee the economists I have read articles from say we aren't in a recession yet, and it would have to be a lot worse to hit a depression.

We aren't even close to the double digit inflation, gas lines, unemployment of the Carter Administration. NO WHERE NEAR IT.

I wouldn't be taking too much advice from your Fiance if she is claiming we are heading into a depression, when all our economic indicators are all better than they were in the late 70's during Carters Administration.

Yes I was around then, and I remember the gas lines and people complaining because gas hit 70 cents a gallon. Lets not forget the gas rationing and the heavy duty inflation that kept the economy down. People were just happy to have a job then.

It is sad to see another American company closing down shop in America to run to a foreign country to get cheaper labor, but that isn't a sign of recession it is a sign of greed, that started back during the Clinton administration of the 90's.

If you are going to talk doom and gloom, you should make sure that there is doom and gloom abounding about, and not political rhetoric from any side to get one side in power.


"The whole principle [of censorship] is wrong. It's like demanding that grown men live on skim milk because the baby can't have steak." -- Robert Heinlein














botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki