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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: April Fools?
By eye smite on 4/1/2008 3:28:20 PM , Rating: 1
I've made noise about this on DT before and was called narrow minded and racist and everything else. Why the hell is it so hard for Ameridcan companies to give America people jobs? They're just greedy as hell, you know Dell is making plenty of money, but they want more and they fluff it up by calling it a business decision. So here goes another 8800 jobs in the name of greed. If you suck so bad at making profit in an ethical manner, why the hell are they letting you run the company.


RE: April Fools?
By dever on 4/2/2008 3:17:54 PM , Rating: 3
I think you've "caught hell" because you make statements like this. Here are a few flaws in your statements.

1) Jobs aren't "given" away. It's not a lottary.

2) Greed is a stupid term that implies some moral superiority on your part. If Dell is excercising force or fraud to increase profits, this would be "greedy." If they are using fraud (which this is not), then they are doing something illegal and should be punished. As for force, this is a form of greed restricted to government use.

3) If you consider price as one of the determining factors of a purchase, such as a computer, then you are "greedy" by your definition, and have contributed as much toward laying off workers as the company management.

4) "making profit in an ethical manner" What? Is it ethical for the company to retain a few workers until the company fails and they all lose their jobs? Is it ethical to deny business owners the freedom to make basic business decisions?

5) The logical conclusion to your assinine assertions is some sort of communist or fascist regime where control over private industry is centralized. Why not visit Cuba... I hear you can use a computer now. You just can't afford to buy one because of too much "job security." Isn't government control grand?


"I want people to see my movies in the best formats possible. For [Paramount] to deny people who have Blu-ray sucks!" -- Movie Director Michael Bay














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