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Dell to save $3 billion, shut Austin plant, cut jobs
Reuters ^ | 3/31/08 | Philipp Gollner

Posted on 03/31/2008 3:34:17 PM PDT by kiriath_jearim

SAN FRANCISCO (Reuters) - Dell Inc (DELL.O: Quote, Profile, Research) said on Monday it plans to save $3 billion annually over the next three years by closing its Austin, Texas desktop computer manufacturing plant and cutting thousands of jobs.

The company's shares rose 1.1 percent following the announcement after closing up 1.6 percent on Nasdaq.

Dell, the world's second-largest PC maker after Hewlett-Packard Co (HPQ.N: Quote, Profile, Research), also repeated its goal of cutting 8,800 jobs, or about 10 percent of the work force, and said it will review "ownership alternatives" for its Dell Financial Services business.

The company said it had already eliminated 3,200 of the targeted jobs.

The Round Rock, Texas-based company also said it would reduce costs in design, manufacturing and logistics, materials and operating expenses.

Dell announced the plans as it prepares for its first analyst meeting in three years. Analysts have called on Dell to cut costs more aggressively as profit margins have narrowed.

The financing-business review should be completed by Dell's fiscal third quarter, the company added.


TOPICS: Business/Economy; Culture/Society; Miscellaneous; US: Texas
KEYWORDS: business; dell; economy; finance; layoffs; lowqualitycrap; manufacturing; technology
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1 posted on 03/31/2008 3:34:18 PM PDT by kiriath_jearim
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To: kiriath_jearim

"dell fired you, dude !!"

2 posted on 03/31/2008 3:41:56 PM PDT by kingattax (99 % of liberals give the rest a bad name)
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To: kiriath_jearim

This means all manufacturing moves to China (my prediction).


3 posted on 03/31/2008 3:42:59 PM PDT by devane617 (Find friends, ditch enemies !)
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To: devane617

IBM sold to Lenovo, now it`s just another crappy laptop

made in China.

Never went near a Dell, not even with a 10 foot pole,

they`re junk.


4 posted on 03/31/2008 3:46:44 PM PDT by Para-Ord.45
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To: kiriath_jearim

Ouch.


5 posted on 03/31/2008 3:48:00 PM PDT by txhurl
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To: Para-Ord.45

I don’t know about that. I’ve had mine just about trouble-free (not counting operator error) for 6 years. I’d buy another.


6 posted on 03/31/2008 3:52:28 PM PDT by MizSterious (The Republican Party is infected with the RINO-virus)
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To: txflake

Buggy whip jobs. Fired employees need to become self employeed and sell cheap merchandise on ebay through that late night informercial Crazylikeafox123

LOL


7 posted on 03/31/2008 3:54:11 PM PDT by am452 (In order to ensure the quality of your patriotism, your conversation may be monitored.)
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To: kiriath_jearim

That means that pretty much 100% of DELL computers will come from Asia... nice.


8 posted on 03/31/2008 3:55:31 PM PDT by TheBattman (LORD God, please give us a Christian Patriot with a backbone for President in 08, Amen.)
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To: MizSterious

I won’t touch another one. In less than 3 years the motherboard fried on my last Dell.


9 posted on 03/31/2008 3:55:55 PM PDT by evaporation-plus
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To: am452

Ain’t free trade great?


10 posted on 03/31/2008 3:56:59 PM PDT by FightThePower! (Fight the powers that be!)
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To: kiriath_jearim

IOW they will be made in a full automated non human operated plant someplace outside of the USA.

(see also why there are no new car plants in michigan)


11 posted on 03/31/2008 3:58:13 PM PDT by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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To: kiriath_jearim

Somebody needs to write the story of how Dell moved from being the radically innovative PC disintermediator and turned into General Motors.


12 posted on 03/31/2008 3:58:20 PM PDT by Jagman (Liberalism is a "progressive" disease)
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To: kiriath_jearim

Saving $3 billion annually is huge. If they can deliver the same product with that kind of savings, it’s a no-brainer.


13 posted on 03/31/2008 3:58:30 PM PDT by Dog Gone
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To: FightThePower!

I ain’t NEVER buying a Dell computer again!!


14 posted on 03/31/2008 3:59:11 PM PDT by levotb
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To: kiriath_jearim

Well, what a great time for this question!

Now that I’m NOT going to be buying a Dell, what would all of you good techie FReepers recommend for a DIY gaming desktop? I already have the tower and other items picked out, but would like to know your opinions on what CPU, MoBo and videocard.

I’m talking a rig that’ll play Crysis at the best settings.

Thanks in advance.


15 posted on 03/31/2008 4:00:35 PM PDT by RandallFlagg (Satisfaction was my sin)
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To: MizSterious

You’d buy another from an outsourcing, American worker-firing/shafting mega company? The U.S. should slap a 30% tariff on ALL Dell products made outside the U.S. for sale in the U.S. Come to think of it, the U.S. should do this to ALL imported items from outsourced/offshored U.S. companies!! Whatta dream!


16 posted on 03/31/2008 4:01:24 PM PDT by levotb
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To: Para-Ord.45
Never went near a Dell, not even with a 10 foot pole,

they`re junk.

For notebooks I stick with Toshiba. I never had a problem with them. They never seem to quit working either. I still have an old one that I bought in 91 that still works.

17 posted on 03/31/2008 4:03:52 PM PDT by apt4truth
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To: MizSterious; Para-Ord.45

I’ve got over 10 yrs of heavy use on mine and have had to replace only the modem, which was 16 bucks at walmart.


18 posted on 03/31/2008 4:04:08 PM PDT by Ben Ficklin
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To: levotb
You’d buy another from an outsourcing, American worker-firing/shafting mega company? The U.S. should slap a 30% tariff on ALL Dell products made outside the U.S. for sale in the U.S. Come to think of it, the U.S. should do this to ALL imported items from outsourced/offshored U.S. companies!! Whatta dream!

Yeah...and we should slap a 30% tariff on all products made outside my state and a 30% tarriff on all products made outside my county and a 30% tarriff on all products made outside my block. That would guarantee that we would all be prosperous.

In fact we should ban trade entirely, since all trade is unfair. North Korea is the model for us...

jas3
19 posted on 03/31/2008 4:04:42 PM PDT by jas3
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To: Para-Ord.45

Oxy moron.....never near enough to know what you’re talking about.

I expect you are only happy with your commodore


20 posted on 03/31/2008 4:06:11 PM PDT by bert (K.E. N.P. +12 . Never say never (there'll be a VP you'll like))
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