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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 FITCamaro on 4/5/2008 5:43:46 PM , Rating: 2
To me businesses need to be run with a moral component. Otherwise they will go to any length to make money.....kind of like they're doing....funny isn't it. Sweat shops, paying pennies an hour in 3rd world countries, etc. All because most companies no longer have morals.

There's nothing wrong with wanting to maximize your profit share. But if its done by screwing over those who helped make it possible, thats not right. You should reward those who work hard for you with some loyalty. Not cut them the second your stock slips 10 cents and you need to get it back up.

RE: Here's an idea
By ghost101 on 4/6/2008 7:03:04 AM , Rating: 2
As mentioned by other people, companies simply give what the consumer wants. If foreign and international laws allow cheap labour overseas and the consumer doesnt object, why is it wrong? Why should people listen to you? If you wish to change things like this, then engage in what you believe to be ethical consumption. Only then will firms change. Firms act within the law to satisfy consumers. So only 2 things can change, consumer wishes or the regulations. Again, i want to know what regulations can be put in place without damaging the economy.

"If a man really wants to make a million dollars, the best way would be to start his own religion." -- Scientology founder L. Ron. Hubbard

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