Tuesday, April 1, 2008
Dell Inc. said 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, 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 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.
By: DocMemory
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