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Dell says expect more than the originally announced 8,800 jobs to be cut

Dell announced earlier this week that it would close down its Austin, Texas PC manufacturing plant and laying off 900 employees in the Austin area. Dell also said at that time that it intended to cut an additional 8,800 jobs within the company in an effort to save a total of $3 billion over the next several years.

Michael Dell, CEO and Founder of Dell, said on Thursday, “We're decreasing our head count. It's declined in the past two quarters and it will decline again in the first quarter. And we will go past the 8,800 target previously discussed as we achieve everything that I'm outlining today."

The AP reports that 5,500 Dell jobs have been cut so far with 1,000 more cuts coming this quarter. However, Dell CFO Donald Carty does say that there has been an increase in frontline personnel like sales and customer support for a net reduction of 3,200 jobs so far.

Dell isn’t alone in cutting jobs; Motorola is having its own problem with profitability and too many mouths to feed. Motorola announced recently that it wanted to break into two companies in an effort to become more profitable.

Motorola announced today that it would cut an additional 2,600 jobs adding up to 10,000 jobs cut since the beginning of 2007. The reason for the job cuts is blamed in part on the poor sales of cellular phones. The layoffs are the first wave of a plan to save Motorola $500 million this year.

The Wall Street Journal quotes Motorola from a statement saying, “The work-force reductions are intended to make financial resources available for strategic business investment, while better aligning operational costs and expenses with business growth.”

Motorola is cutting jobs both abroad and at home, 354 of the jobs cut were in Plantation, Florida where handsets for use on WiMax networks were in development. The sad state of WiMax in the U.S. with Sprint continually postponing its Xohm rollout likely had an effect on those cuts.



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RE: Here's an idea
By fic2 on 4/4/2008 3:57:11 PM , Rating: 2
I have to agree with you on the innovative products. Motorola cell phones - they produced the killer product in the Razr but since then they have only done different colors of the Razr and now a Razr2. Big deal. They don't even really have a phone with a built-in keyboard which is needed since all the teens do is text.


RE: Here's an idea
By HaZaRd2K6 on 4/4/2008 4:02:59 PM , Rating: 2
quote:
They don't even really have a phone with a built-in keyboard


What about the Moto Q? http://tinyurl.com/63gzvm

Personally, I've got a KRZR and I love it. It's much slimmer than both the RAZR and the RAZR2, but it does everything those phones can do. Motorola's 4LTR series has a lot of nice phones, actually. The SLVR, RAZR, KRZR and PEBL are/were all big sellers here in Canada.


RE: Here's an idea
By sprockkets on 4/4/2008 8:17:52 PM , Rating: 2
If they came out with a 3G A1200 aka MING, I would buy it. But nothing recently perks my interest with Motorola. Oh well.


RE: Here's an idea
By aebiv on 4/8/2008 5:21:41 PM , Rating: 2
I love my Q9h, and the KRZR served me very well. Motorola has good products, just like the RAZR2 has a lot of power behind it. What I see being the problem is, sales staff at AT&T being highly uneducated and Motorola not making all the tools and abilities of their phone understood to everyone.

Just like the little gal I bought my Tilt/HTC Kaiser from. She swore up and down that the iPhone did everything the Tilt did, and did it better.

Motorola suffers from not being risky enough with new product design, and being far to conservative in marketing.


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