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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 BansheeX on 4/5/2008 4:08:47 PM , Rating: 2
You assume wrongly that the people losing their job are not going to find another and shift to an area where the production is needed. Funny how everyone misses that integral component of a free market.

The only thing to screw it up is people like you getting government to interfere under the pretense of helping, leading to legislation which introduces privileges, destroying small business competition and incentivizing outsourcing and monopolistic behavior: corporate tax breaks, special subsidies using taxpayer money, managed trade agreements like NAFTA, bank bailouts, no-bid contracts, on and on and on. So instead of natural supply and demand, you have companies paying top dollar lobbying politicians, who upon getting elected, are obliged to do this crap for them in return. That's not a truly free market, that's massive socialist intervention and Republican and Democrat motivational speakers alike are fooling the crapsauce out of you. Wake up.


RE: Here's an idea
By SlyNine on 4/5/2008 10:25:28 PM , Rating: 1
A totally free market doesn't exist either and you are fooling yourself if you think it would be better, It would be total anarchy. Fact is we need some regulation. Just how much and the correct balance I do not know, But we are not there.

Im assuming wrongly that these people are not going to find another job that pays them AS MUCH as they currently are? really where's the proof on that. And as far as lobbing these politicians did you know that they put a lock out so UPRR employees couldn't even strike, oh seems fair enough when they stomp on the workers rights doesn't it.

How would you consider Nafta (cafta), Bank Bailouts, No-Bidcontracts and anything of the such something I'm pulling for, Im about helping the workers in the USA not about making it easier to shift labor to countries we cannot control the labor. If we cannot control their labor how can we make sure we have a fair competition with American workers. No I'm against anything that makes it cheaper to leave this country and get cheap/slave labor somwhere else with no regulation at all. You can bring up these bad things that have nothing to do with what I'm saying to try and make my 2 cents sound like crap if you want I guess.


RE: Here's an idea
By ghost101 on 4/6/2008 6:57:32 AM , Rating: 2
Whats your plan on stopping outsourcing or hiring foreign labour? Ban companies from doing so? Import tariffs? Minimum wages? Anti-immigration policies?

I suggest you look at why the USA is the economic powerhouse of the world. Then reconsider everything you've said.


RE: Here's an idea
By SlyNine on 4/6/2008 8:55:16 PM , Rating: 2
Yea out sourcing and hiring foreign labor has been such a god send for us hasn't it... Sarcasm alert. Our ability to manufacture and produce products and sell them is what made us an economic powerhouse, we are loosing that and we are loosing our economic powerhouse.


RE: Here's an idea
By dever on 4/7/2008 3:19:28 PM , Rating: 2
Your so-called "ability" to produce... was born of the freedom to produce. We've slowly ratcheted up the regulations, restrictions and corporate favoratism by government, crippling the natural "ability" of the free market to produce. The US became the greates because it started as the most Free. Now many in this country want to revert to authoritarian control of business/industry (which is actually just authoritarian control of the collections of individuals voluntarily cooperating to produce goods or services)... and all in the name of "progress."


RE: Here's an idea
By SlyNine on 4/8/2008 1:17:30 AM , Rating: 2
So you are saying the great depression was caused because government regulated big business? If you want to play the blame game on the government and ignore all the other factors that effect the market then be my guess.

We were in a growing economy then, what killed it is massive loans to people that could not pay them off. Now we are suffering the after effects.


"So, I think the same thing of the music industry. They can't say that they're losing money, you know what I'm saying. They just probably don't have the same surplus that they had." -- Wu-Tang Clan founder RZA














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