DELL TO CLOSE PLANT …….TO LAYOFF 900 WORKERS .

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DELL TO CLOSE PLANT …….TO LAYOFF 900 WORKERS .

 user 2008-04-01 at 12:01:14 pm Views: 65
  • #19717
    Dell to Close Plant, Lay Off Workers
    ROUND
    ROCK, Texas (April 08) – Dell Inc. said Monday it will save as much as
    $3 billion over the next three years as it cuts costs and lays off
    workers, with measures including closing a desktop manufacturing
    facility in Austin.he world’s No. 2 computer maker will cut 900 of
    17,500 jobs in the Austin area by closing the plant, company spokesman
    David Frink said.Dell also reaffirmed its plan – announced last year -
    to cut at least 8,800 jobs, or about 10 percent of its work force.
    Frink said the Round Rock-based company didn’t have a time frame to
    reach that number.

    In the last nine months of fiscal 2008, Dell cut 3,200 jobs.
    The
    Austin facility will close late in fiscal 2009, which ends Jan. 31,
    Frink said.”Frankly, the elimination of jobs is significant whenever
    and wherever you do it,” said Frink. “We’re working to minimize the
    consequences.”Two months ago, Dell announced 1,200 job cuts, about 900
    at a call center in Canada.The company also is closing 140 kiosks,
    mostly in shopping malls, where customers could examine and order
    computers but not buy them to take with them.Dell, built on sales
    direct to consumers, is striking deals with more retailers to sell them
    in lieu of using the kiosks.The company also plans a range of cost cuts
    in design, manufacturing and logistics – and materials and
    operations.”We’re talking about action we’re taking to improve our
    competitive advantage and to rationalize our operations,” Frink said.

    And
    it is reviewing alternatives for its financial services business,
    especially its consumer credit and its financing operation for small to
    medium business customers. The company recently assumed full ownership
    of its credit arm.Frink said the review could result in no change or in
    the pursuit of new partnerships.”We’re absolutely committed to
    financing being an integral part of our overall business,” Frink said.
    “Dell Financial Services is a profitable Dell asset. We believe the
    combination of Dell and the right structuring going forward will
    actually be able to enhance it.”Shares of Dell rose 31 cents to close
    at $19.92. They dropped and then regained 25 cents in after-hours
    trading.