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.

"dell fired you, dude !!"
This means all manufacturing moves to China (my prediction).
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.
Ouch.
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.
Buggy whip jobs. Fired employees need to become self employeed and sell cheap merchandise on ebay through that late night informercial Crazylikeafox123
LOL
That means that pretty much 100% of DELL computers will come from Asia... nice.
I won’t touch another one. In less than 3 years the motherboard fried on my last Dell.
Ain’t free trade great?
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)
Somebody needs to write the story of how Dell moved from being the radically innovative PC disintermediator and turned into General Motors.
Saving $3 billion annually is huge. If they can deliver the same product with that kind of savings, it’s a no-brainer.
I ain’t NEVER buying a Dell computer again!!
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.
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!
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.
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.
Oxy moron.....never near enough to know what you’re talking about.
I expect you are only happy with your commodore
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.
Wouldn’t want Americans to actually have good paying jobs.
It’s a MAC for us next go ‘round. Still using one we bought over 15 years ago.
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!
Dell announcement cheers Apple
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....
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....
“I DRINK YOUR MILKSHAKE!”
Whoooops!
Started in my adult beverages a little early today...
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.
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.
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.
Very different from what's going on today.
Dell will sell computers made overseas to Americans because they pay the overseas workers peanuts.
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.
I just hate to see companies cutting positions here and hiring in 3rd world countries.
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?
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.
Shouldn’t this have a “Made in China” ping?
Soon Dell will be just like ... Lenovo.
It seems that free market principles are lost on some folks. Things evolve, that’s the way it is.
Sorry “free trader”: no more koolaid for you.
China now pwns your koolaid.
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.
Products made in Ireland are not likely imported to the U.S.
Well this ought to do that region wonders.
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.
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.
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.
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