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Dell lays off 8,000 as 1Q earnings fall
Associated Press ^ | May 31, 2007 | Matt Sagle

Posted on 05/31/2007 2:16:17 PM PDT by Zakeet

Dell Inc. said Thursday that earnings fell slightly in preliminary first-quarter results, but the computer maker planned to lay off more than 8,000 employees over the next year as part of an ongoing restructuring.

Dell said it earned $759 million, or 34 cents per share, in the three months ended May 4. That compared with $762 million, or 33 cents per share, in the year-ago period.

First-quarter sales rose nearly 1 percent from the year ago period to $14.6 billion.

[Snip]

The layoffs, which represent 10 percent of Dell's global work force of 88,100 full time and part-time employees, come as Dell struggles to regain market share after Hewlett-Packard Co. ousted it from the top spot in worldwide computer shipments last year.

In the first quarter, HP kept its lead over Dell with about 4 percent more shipments, according to tech research firms IDC and Gartner Inc.

As part of an ongoing turnaround effort led by Michael Dell, the company has undergone an executive shake up and numerous other changes to improve customer service and reclaim market share.

The company said it was reviewing costs across the board and that the job cuts would vary across geographic regions and customer segments to "reflect business considerations as well as local legal requirements."

"While reductions in head count are always difficult for a company, we know these actions are critical to our ability to deliver unprecedented value to our customers now and in the future," Michael Dell said in a statement.

(Excerpt) Read more at news.yahoo.com ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: dell; layoffs; offshoring
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To: 38special

Too funny.

I asked this guy once where he was speaking from. He said, “We are not allowed to tell”. I asked him what are they afraid of, mobs with torches?


61 posted on 05/31/2007 3:20:11 PM PDT by dragnet2
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To: GunRunner
My Dell desktops have always been trouble free. And “Vincent” in Bombay was good enough to be able to have a replacement optical drive installed in home in 24 hours when I had one go out.

The only time I ever had an issue with understanding because of the English language challenged was with Sony and that was because of issues with a digital camera and I finally hung up and took it back to where I bought it and acquired a new replacement trouble free. (WalMart)

Not a cut meant for Sony for I have a household full of entertainment electronics from Sony, less my Dell computers, and have had trouble free service not requiring support.

62 posted on 05/31/2007 3:20:57 PM PDT by EGPWS (Trust in God, question everyone else)
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To: Zakeet

Love my Dells, tech support is pretty good, on major windows crashes you have to really get someone who knows their stuff. But it might take a couple of calls anyway. Have had excellent results and reliability from the computers(more than 10 purchases) for more than 10 years now. My first was a Gateway and it was a POS lemon out of the box.

Just went through really crappy tech support (outsourced)with Linksys on a 3 week old router that died (bought from dell, new replacement came right away), and the new Linksys software is disconnecting the router. Figured this out with Verizon’s DSL tech, who was stellar and an American.


63 posted on 05/31/2007 3:24:27 PM PDT by finnman69 (cum puella incedit minore medio corpore sub quo manifestus globus, inflammare animos)
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To: Ole Okie
just bought a Dell 690 top of the line Xeon duo 2.66GHz Precision workstation w/ 4GB ram, Nvida Quadro FX3500 card and a 24” LCD monitor.

I am a happy camper. Did I mention that migrating my data was a snap? Windows XP pro, BTW. Vista is not compatible with many of the high end AutoCAD VIZ programs I use.

64 posted on 05/31/2007 3:30:53 PM PDT by finnman69 (cum puella incedit minore medio corpore sub quo manifestus globus, inflammare animos)
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To: durasell
To all those rejoicing in the loss of 8,000 American jobs. I respectfully suggest you try rooting for the “home team” every once in awhile.

I don't rejoice with such a scenario, I look at the big picture with vision and understand that we ARE the greatest country the world has ever known and will maintain my attitude and won't focus on an uncomfortable itch on my ankle as long as my heart is still working properly to maintain sustenance.

We are the GREATEST and until we are no longer the focus for the rest of the world as the place to be with fervor, I "ain't gonna'" complain.

65 posted on 05/31/2007 3:32:41 PM PDT by EGPWS (Trust in God, question everyone else)
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To: The South Texan

I thought Dell was bad. Then I went over to HP. Sweet Jesus! I brought one of their premium workstations back in March—it was delivered in the wrong configuration. I am still trying to get it worked out. Try imagining a part that has taken more than a month to arrive. If I add up all the time I spent on this, its probably more than the system was worth!


66 posted on 05/31/2007 3:34:26 PM PDT by rbg81 (1)
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To: EGPWS

We are the greatest country on the planet, but understand this: The folks American companies against aren’t playing around. The Chinese are very, very serious about moving into the high tech arena in a big way. They are very, very serious about moving into auto manufacturing in a big way.

These industries represent American jobs that support American families.


67 posted on 05/31/2007 3:36:00 PM PDT by durasell (!)
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To: Always Right
Dell’s stock was up 2.6% today and is up another 6% in after hours trading, for what that is worth.

Laying off loyal workers always raises the stock price. For a while anyway.

68 posted on 05/31/2007 3:38:22 PM PDT by El Gato (The Second Amendment is the RESET button of the United States Constitution." -- Doug McKay)
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To: Zakeet

Nationalize Dell, and end the problem of regular layoffs. Problem solved!


69 posted on 05/31/2007 3:39:13 PM PDT by Revolting cat! (We all need someone we can bleed on...)
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To: Zakeet

Dude, you're getting a pink slip.

70 posted on 05/31/2007 3:39:37 PM PDT by anymouse
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To: anymouse

Dude, you’re kids will be detailing the wheels on a Chinese executive’s car!


71 posted on 05/31/2007 3:40:50 PM PDT by durasell (!)
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To: durasell
Would you pay more for a product to have tech support in the US?

Probably. Although I rarely have trouble understanding Indians, English is one of their official languages, and most speak it. They just speak it with a heavy, and unusual, accent. Their grammar is just fine. I'm of course speaking of the educated Indians, but those are the ones that they hire for tech support.

However one way that companies could handle the situation is to have an 800 tech support number that connects you to India or wherever, and a 900 number for US based tech support. They'd find out real quick if people are willing to pay more for US tech support.

72 posted on 05/31/2007 3:42:41 PM PDT by El Gato (The Second Amendment is the RESET button of the United States Constitution." -- Doug McKay)
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To: dragnet2
why are they laying off 8,000 Americans?

The article doesn't say where the 8,000 layoffs are geographically. Some, even many, *could be* at the off shore call centers.

73 posted on 05/31/2007 3:44:49 PM PDT by El Gato (The Second Amendment is the RESET button of the United States Constitution." -- Doug McKay)
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To: El Gato

If I were running Dell — I’d adopt the Jet Blue model of phone support. There is no tech center. The employees field the calls from their homes through a special line. That brings the costs down somewhat.


74 posted on 05/31/2007 3:47:15 PM PDT by durasell (!)
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To: dragnet2
If they are so cheap and inexpensive to purchase why in hell are their profits down, and why are they laying off 8,000 Americans?

On their low-end PCs, Dell loses money on each unit sold. That is part of their business model and market share strategy.

Another reason - providing customer support for Microsoft Windows and Linux problems is very expensive.

On the rare occasions when I've call Apple for customer support, the Apple person was always an American - usually in Texas.

75 posted on 05/31/2007 3:47:29 PM PDT by HAL9000 (Get a Mac - The Ultimate FReeping Machine)
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To: Zakeet

Dell, just the latest of corporations whose management decisions choked the goose who laid the golden egg...

Poor designs, cheapest possible execution and massive outsourcing of manufacturing and “customer service” — doesn’t earn U.S. customer satisfaction or LOYALTY...

Dell’s U.S. market share and profits will continue to decline, so layoffs will continue on an increasingly steeper ramp...

Been there, seen that....


76 posted on 05/31/2007 3:50:26 PM PDT by river rat (Semper Fi - You may turn the other cheek, but I prefer to look into my enemy's vacant dead eyes.)
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To: Always Right

Dead Cat Bounce?


77 posted on 05/31/2007 3:52:11 PM PDT by river rat (Semper Fi - You may turn the other cheek, but I prefer to look into my enemy's vacant dead eyes.)
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To: DemEater
. I like to ask if that’s a southern accent I detect.

Might have been. Bangalore, one of their high tech centers is in the south of the country. Even Bombay/Mumbai is south of the center.

Of course they not only have regional accents and dialects, they have regional languages. Although the educated folks will usually speak at least 3 languages, their regional one, Hindi and English.

78 posted on 05/31/2007 3:57:06 PM PDT by El Gato (The Second Amendment is the RESET button of the United States Constitution." -- Doug McKay)
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To: durasell
The Chinese are very, very serious about moving into the high tech arena in a big way. They are very, very serious about moving into auto manufacturing in a big way.

So?

Should I be concerned because a part of humanity actually wants to promote themselves as a nation?

Repeat your point of concern with this if you would.

79 posted on 05/31/2007 4:01:23 PM PDT by EGPWS (Trust in God, question everyone else)
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To: EGPWS

My point is very simple: Americans should know exactly what side they are on. For those confused, I’ll provide a hint: It isn’t China’s.


80 posted on 05/31/2007 4:06:14 PM PDT by durasell (!)
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