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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 txflake
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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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To: jas3
Yep. Nevermind that more employment money is ‘insourced’ by foreign companies hiring U.S. workers than is ‘outsourced’ by U.S. companies to foreign workers. Cut off your nose to spite your face.
21 posted on 03/31/2008 4:06:23 PM PDT by allmendream ("A Lyger is pretty much my favorite animal."NapoleonD)
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To: levotb

I don’t think our trade position would do well with a 30% tariff. However, hiking import fees for added inspections would be a no-brainer. This should have been done in the middle of all the toy/toothpaste/dog food recalls late last year.


22 posted on 03/31/2008 4:09:14 PM PDT by dan1123 (If you want to find a person's true religion, ask them what makes them a "good person".)
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To: kiriath_jearim
Ha, ha, ha...serves the left-wing puke Austin community right that their jobs are being outsourced...unspoken in the article, but is most likely what's occurring..."Dude, you are getting a Delhi!"
23 posted on 03/31/2008 4:32:09 PM PDT by quark
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To: kiriath_jearim

Wouldn’t want Americans to actually have good paying jobs.


24 posted on 03/31/2008 4:33:39 PM PDT by mysterio
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To: MizSterious

It’s a MAC for us next go ‘round. Still using one we bought over 15 years ago.


25 posted on 03/31/2008 5:05:42 PM PDT by cubreporter
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To: allmendream
Yep. Nevermind that more employment money is ‘insourced’ by foreign companies hiring U.S. workers than is ‘outsourced’ by U.S. companies to foreign workers. Cut off your nose to spite your face.

Exactly. We will all be richer when we kick Nissan out of Mississippi and fire the 4,000 traitorous Americans who dare to work there for a *FOREIGN* company. How dare they?!?!

jas3
26 posted on 03/31/2008 5:25:37 PM PDT by jas3
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To: jas3
Nevermind that the U.S. workforce is the most industrious, productive and highly paid workforce in the world. Lets make sure we keep all the crappy jobs too! Even if it could be more cheaply done by a guy in India with 20 minutes of instruction! That job belongs to AMERICA!

This kind of protectionism is what I expect from France. MAN UP and be AMERICANS. We don't need protectionism to compete. WE DRINK THEIR MILKSHAKES!

27 posted on 03/31/2008 5:31:42 PM PDT by allmendream ("A Lyger is pretty much my favorite animal."NapoleonD)
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To: kiriath_jearim
Headline should have been:

Dell announcement cheers Apple

28 posted on 03/31/2008 5:38:30 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: Para-Ord.45
The IBM ThinkPads were being built in China for YEARS before the sale to Lenova...

I've never owned any “notebook” but IBM or Lenova — and have never experienced ANY problem with them.....

They're lightweight, thin, have a small footprint yet are the ROCK OF GIBRALTAR for reliability and favored by “road warriors” whose notebooks see very harsh service!

In the interest of FULL DISCLOSURE -- I'm retired from IBM after 37 years of interesting and challenging experiences.

However -- due to my addiction to iPods and such ---- I suspect I will be ADDING an Apple to the household inventory of machines....

29 posted on 03/31/2008 5:47:15 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: Para-Ord.45
The IBM ThinkPads were being built in China for YEARS before the sale to Lenova...

I've never owned any “notebook” but IBM or Lenova — and have never experienced ANY problem with them.....

They're lightweight, thin, have a small footprint yet are the ROCK OF GIBRALTAR for reliability and favored by “road warriors” whose notebooks see very harsh service!

In the interest of FULL DISCLOSURE -- I'm retired from IBM after 37 years of interesting and challenging experiences.

However -- due to my addiction to iPods and such ---- I suspect I will be ADDING an Apple to the household inventory of machines....

30 posted on 03/31/2008 5:47:47 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: jas3
http://www.youtube.com/watch?v=URjeS5-NaXY

“I DRINK YOUR MILKSHAKE!”

31 posted on 03/31/2008 5:47:50 PM PDT by allmendream ("A Lyger is pretty much my favorite animal."NapoleonD)
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To: river rat

Whoooops!

Started in my adult beverages a little early today...


32 posted on 03/31/2008 5:49:16 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: river rat

So you`re familiar with the T20 and R31.

Made in Mexico and Philippines.

I`ve no need for a laptop `cept to run usb to aldl obd I II

to te vehicles.


33 posted on 03/31/2008 6:03:46 PM PDT by Para-Ord.45
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To: river rat
Dell should shut down the factory in Limerick Ireland instead where they employ 3,500.
34 posted on 03/31/2008 6:04:23 PM PDT by Griddlee
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To: quark

Huh? Please explain what this has to do with Austin. It’s strictly a business decision made by a company based in Round Rock, and from what I’ve heard so far, that function will be moved to North Carolina. Get a clue, don’t spew.


35 posted on 03/31/2008 6:08:04 PM PDT by davetex (My tagline has been placed on the disabled list.)
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To: allmendream
You should probably ask the laid off employees if they liked and wanted to keep their 'crappy' jobs. Ask them what they are doing now.

Let's see where these 'crappy' jobs are going to go. My guess is China or India.

Pretty soon all what you call 'crappy' jobs will be shipped overseas - we can't compete with people who are happy with $50 per month salaries - let's see how much money you save buying the goods that were made overseas - not much.

If a company is experiencing a downturn then layoffs occur - but in most cases today, that isn't true. Companies work harder to cut American wages in order to increase their bottom line - whatever happened to putting out a superior product in order to increase your bottom line?

This isn't about protectionism, it's about playing on a level field.

36 posted on 03/31/2008 6:44:48 PM PDT by american colleen
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To: jas3
Thank you Ronald Reagan. They wanted access to the vast American market and he said sure, but open your plant here.

Very different from what's going on today.

Dell will sell computers made overseas to Americans because they pay the overseas workers peanuts.

37 posted on 03/31/2008 6:47:26 PM PDT by american colleen
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To: american colleen

When did North Carolina become over sea’s? Just asking. My understanding is that it’s a logistics decision to ship out of Miami instead of Houston. It’s not gloom and doom, really.


38 posted on 03/31/2008 6:58:36 PM PDT by davetex (My tagline has been placed on the disabled list.)
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To: davetex
I know they have a plant in NC - and I hope you're right that it is a decision regarding shipping logistics - so they'll relocate some/all of the (formerly located in) Austin jobs elsewhere in the USA.

I just hate to see companies cutting positions here and hiring in 3rd world countries.

39 posted on 03/31/2008 7:22:43 PM PDT by american colleen
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To: american colleen
And we are winning, on a level playing field or not. No matter how much other nations try to “stack the deck” with Socialism it always ends up biting them in the rear. I grew up in the 80’s when everyone was afraid of Japan. Japan sold us lots of electronic goods, that was the extent of the “Yellow Peril” from Japan. The innovation and invention keeps coming from the U.S.A..

You seem to think that on the playing field, level or not, there should never be any losses. Well some people lost their jobs, this isn't France where a job is a lifetime appointment. If they have any skills valuable to their fellows they will find new jobs. This is, after all, the land of opportunity. Or would you rather we made it into France?

40 posted on 03/31/2008 7:24:48 PM PDT by allmendream ("A Lyger is pretty much my favorite animal."NapoleonD)
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To: american colleen

Yes, I agree with you on that. I live “around the corner” from the Tofler plant. It’s not huge, and the market here will absorb those workers. Central Texas is doing well compared to other parts of the country. It’ll all be alright.


41 posted on 03/31/2008 7:35:23 PM PDT by davetex (My tagline has been placed on the disabled list.)
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To: kingattax

Shouldn’t this have a “Made in China” ping?

Soon Dell will be just like ... Lenovo.


42 posted on 03/31/2008 7:36:50 PM PDT by Cringing Negativism Network
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To: allmendream

It seems that free market principles are lost on some folks. Things evolve, that’s the way it is.


43 posted on 03/31/2008 7:46:08 PM PDT by davetex (My tagline has been placed on the disabled list.)
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To: davetex

Sorry “free trader”: no more koolaid for you.

China now pwns your koolaid.


44 posted on 03/31/2008 7:47:33 PM PDT by Cringing Negativism Network
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To: Para-Ord.45

Never owned either -— My first ThinkPad was a T40 (I think) and my current is a T43.

This T43 is several years old, and was build FOR IBM by the Lenovo group of Singapore and manufactured in China.

Mine is old enough that it still has the IBM Logo on the outside and inside.... My colleagues still with IBM have mentioned that the Lenovo machines have shown no degradation in quality or reliability... As always - there are other brands on the market with more bells and whistles - but I prefer the smaller and rugged T series due to their reliability and portability combination.


45 posted on 03/31/2008 9:07:15 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: Griddlee

Products made in Ireland are not likely imported to the U.S.


46 posted on 03/31/2008 9:39:15 PM PDT by SeaHawkFan
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To: kiriath_jearim
DELL 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.

Well this ought to do that region wonders.

47 posted on 03/31/2008 9:44:42 PM PDT by dragnet2
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To: SeaHawkFan
"Products made in Ireland are not likely imported to the U.S."

You just got me thinking what imports Ireland would import the US anymore? Sweaters and sheep maybe? Don't know. I just want to play their golf courses sometime.

48 posted on 03/31/2008 9:51:55 PM PDT by AGreatPer
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To: allmendream
So you say we are winning because others are losing?

I don't want to be France --- this is different. This is American companies who sell American products to Americans sending solid middle class jobs to countries that pay peanuts.

I grew up in the 70s. Japan was a cause for concern as they were buying up a ton of American property. We were not shipping our middle class jobs over to Japan. In fact, the employment scene here was pretty good (I used to do college recruiting back then) - ups and downs sure but not crazy enough that we were shipping jobs out of the country solely so American companies could pay slave wages elsewhere.

49 posted on 04/01/2008 1:11:05 PM PDT by american colleen
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To: american colleen
No, this is not a zero sum game. We win when others prosper and can buy our goods and services and hire U.S. workers.

Protectionism is French. They wrote the book on it. It doesn't work very well. Look at how bad France economy sucks before you advocate emulating their business model.

Japan was never a cause for concern among the rational. They sold us electronic goods at a good price, and used a lot of the money to buy American properties and interests in businesses. Everyone thought they were going to ‘eat our lunch’. Now they are hardly even a blip on the radar. Was it protectionism that got us out of our ‘jam’ with Japan?

Either you provide a good service at a good price or you have government DEMAND that a company pay people middle class wages for a ‘slave labor’ job. Who, besides the employee paid middle class wages for a ‘slave labor’ job benefits from that? The company doesn't, the consumer doesn't, and the U.S.A. doesn't benefit.

‘Slave labor’ jobs are better being done in ‘slave labor’ nations.

If your job can be done by a ‘slave’ then go back to school. This is the land of opportunity after all.

50 posted on 04/01/2008 2:13:50 PM PDT by allmendream ("A Lyger is pretty much my favorite animal."NapoleonD)
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