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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 10:08:35 PM , Rating: 1
Less people with jobs means less people buying goods, less people buying goods means more companies with more layoffs.

And yes I firmly believe that if we had more higher paying jobs that would HELP the economy, what do you think this stupid stimulus plan is for. Its too put money in peoples hands.

You think the consumer stopped buying before the layoffs started, interesting theory, I think you're wrong. I think out sourcing was a big part of what started this, and the fact that companies think they need to incress their bottum line each year. Unless you believe that a company can grow to infinity then their is a problem.


RE: Here's an idea
By rsmech on 4/6/2008 5:18:50 PM , Rating: 2
quote:
You think the consumer stopped buying before the layoffs started, interesting theory, I think you're wrong.


I will guarantee that is the case especially in housing. Why do you think there is an inventory of unsold homes? Nobody wanted to believe it so they kept building. The companies kept at it, it was the consumers who quit first. Look into it before discrediting it. The housing market is begging for consumers, we never left, we never slowed until it was too late, the consumer left us because of the tragedy news reports. They created a self fulfilling prophecy.


RE: Here's an idea
By SlyNine on 4/6/2008 8:52:56 PM , Rating: 1
Why did the consumer quite buying homes, because these banks were giving out loans people could never pay off. As soon as people were in to much debt they could no longer get more loans. Then we begin the circle. A few lost their jobs, they foreclosed causing the worth of a home to drop and since banks were loosing money they upped interest rates and made it harder to get loans, since people were already in debt they couldn't get loans. Houses continue to drop and people continue to not be able to afford them.

A lot of what wrong with this society is the debt of the average man. Loosing your job will not help that. BTW I didn't discredit what you said, The forces that drive the economy are pretty complex and tied together in ways its hard to tell what comes first. Like the chicken and the egg.

But it's likely to get worse before it gets better.


RE: Here's an idea
By dever on 4/7/2008 3:13:08 PM , Rating: 2
SlyNine, you're arguing against well established Supply and Demand. Do you really expect companies to increase supply in the face of decreased demand?


RE: Here's an idea
By SlyNine on 4/8/2008 1:13:40 AM , Rating: 2
You cannot have supply if their is no demand. You cannot have demand if their is no consumer. You cannot have a consumer with out jobs or loans. You are seriously trying to argue against that ??


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