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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 BansheeX on 4/1/2008 2:18:51 PM , Rating: 2
http://en.wikipedia.org/wiki/Economic_history_of_I...

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.

Sweden:
“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)

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

Denmark:
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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