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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 SlyNine on 4/5/2008 1:17:35 PM , Rating: 1
Why can't we have a free market where the people at top realize their "free market" has its limitations. If they abuse it, it will fail. Right now they are abusing the hell out of it. Taking advantage of it anyway possible.

This economy runs on consumer demand, without the consumer their is no economy. I don't think we need to go completely socialized or anything, But some small steps to maintain balance in our economy would be nice.

RE: Here's an idea
By rsmech on 4/5/2008 2:59:50 PM , Rating: 3
If they are abusing it the gov't & share holders will take care of it. There is already a system in place.

There are always those who abuse the system, it's not unlike the rest of life. Just look at robbery, murder, rape, ect. I think if you are looking for gov't to fix something maybe they should start on some of these other issues first.

RE: Here's an idea
By SlyNine on 4/5/2008 10:31:14 PM , Rating: 1
Start on issues that can make or break our economy, cause stress and lead people to robbery and murder, oh and their is already a system in place for that too.

Face it the Share Holders don't give a dam if these companies are abusing the system, and when I say that I don't mean in an illegal way. As with anything that's free, If people don't use it responsibly people will step in and make changes. Its been happening for the last 300 years in our country.

RE: Here's an idea
By ghost101 on 4/6/2008 7:04:12 AM , Rating: 2
What abuse?

RE: Here's an idea
By SlyNine on 4/6/2008 8:58:47 PM , Rating: 2
They take advantage of the situation to such extremes they really don't care who's shoes they step on to make a penny unless they get in trouble. That's abuse in my eyes.

But no your right this country's economy is doing great and people have less debt then ever.

RE: Here's an idea
By ghost101 on 4/8/2008 1:11:22 AM , Rating: 2
Nice obscure answer.

I could use that exact same sentence to criticise any business, government, country or institution in the world.

RE: Here's an idea
By SlyNine on 4/8/2008 1:20:04 AM , Rating: 2
Good thing I was pointing at a broad spectrum then eh. You are correct we try to abuse most things, However things do tend too improve over time much to the dismay of the people in power, Change is never good for them. Unless you want to argue Rome was better for the common man then the USA.

RE: Here's an idea
By ghost101 on 4/8/2008 9:09:11 AM , Rating: 2
My point is that, you gave a politician's answer. So once again, i'll ask, what abuse do you see? Who's stepping on who's feet? Give me some examples of abuse that you talk of relevant to the subject matter.

SlyNine, you just spew rhetoric with little knowledge of the underlying reasons for the current economic climate. You also argue with very circular logic.

"We can't expect users to use common sense. That would eliminate the need for all sorts of legislation, committees, oversight and lawyers." -- Christopher Jennings

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