Dell to Lay Off Another 5,600, Close Plant
It wasn't that long ago that Dell was handing out pink slips. Now news from the PC manufacturer is pointing to another $3 billion in cutbacks. The good news (as far as Dell employees are concerned) is that the cutbacks aren't starting right away. Lynn Tyson, Dell's VP of investor relations, tackled the details on one of the company's blogs:
"Now this does not happen over night," explained Tyson, "In fact we said we believe it will take three years to achieve an annualized savings of $3 billion. This means that before you adjust for growth, we believe our costs at the end of our fiscal 2011 will be $3 billion lower than at the end of fiscal 2008."
Naturally, the big question is what/who is getting the boot. According to a company release Dell is planning on:
Closing a desktop manufacturing plant in Austin, Texas.
Cutting 5,600 jobs
Selling/spinning off Dell Financial Services
Lowering manufacturing materials and device component costs
From the looks of it, the market isn't phased by Dell's proposed fat-trimming, but we'll have to wait and see if the other shoe drops at the company's Equity Analyst Meeting tomorrow.
"Now this does not happen over night," explained Tyson, "In fact we said we believe it will take three years to achieve an annualized savings of $3 billion. This means that before you adjust for growth, we believe our costs at the end of our fiscal 2011 will be $3 billion lower than at the end of fiscal 2008."
Naturally, the big question is what/who is getting the boot. According to a company release Dell is planning on:
Closing a desktop manufacturing plant in Austin, Texas.
Cutting 5,600 jobs
Selling/spinning off Dell Financial Services
Lowering manufacturing materials and device component costs
From the looks of it, the market isn't phased by Dell's proposed fat-trimming, but we'll have to wait and see if the other shoe drops at the company's Equity Analyst Meeting tomorrow.
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