Dell to shut Austin plant, review finance businessMon Mar 31, 2008 7:55pm EDT
SAN FRANCISCO (Reuters) - Dell Inc said on Monday it would close its Austin, Texas desktop computer plant with 900 workers, as part of a plan to cut expenses by $3 billion annually in 3 years' time.
The world's second-largest maker of personal computers also said it was reviewing "ownership alternatives" for its financing business, which extends credit to customers buying Dell products.
Dell bought out the remaining stake of the financing business in December from CIT Group Inc, which has been hit hard by the turmoil in the credit markets and may be forced to sell itself.
The announcement came ahead of Dell's first analyst meeting in 3 years this week. Wall Street has been calling on Dell, which ranks behind Hewlett-Packard Co in the PC market, to cut costs more aggressively as profit margins have fallen.
http://www.reuters.com/article/businessNews/idUSN3143312320080331Relax Dell skips India as job cut target25 Apr, 2008, 1040 hrs IST
MUMBAI: Indian employees of Dell can breath easy. The computer maker has decided to keep Asia Pacific out of its proposed cut of 8,800 jobs and will actually increase the staff strength in the region, where some of the world’s fastest growing economies are fuelling an increase in demand, a senior company official said.
“There would be no impact of the planned job cuts in APAC. In fact, looking at the growth we have had so far on in the region, we would instead look to add more people to our existing numbers here,” Dell’s president-Asia Pacific (South) Paul-Henri Ferrand told ET, adding, “Cuts would happen majorly in those regions where the growth for us is stagnated, and APAC is certainly not such a region.” The company employs nearly 12,000 people in India itself. Dell says that it grew nearly 50% year-onyear in the Asia-Pacific and Japan markets in the first quarter of this year, while it recorded $8.5 billion in revenues from the region in Q4 of its last financial year.
Earlier this month, the company’s founder and chief executive Micheal Dell had said that the company was seeking to strip out more than $3 billion of costs over the next four years in a move that will see the computer giant cut 8,800 jobs.
In addition to its earlier announcement on the closure of its Texas plant, on Wednesday the company also announced that it would be closing its Ottawa call centre, cutting as many as 1,100 jobs. Prior to this, it has already made a number of redundancies with 5,500 jobs cut out of the 8,000 planned reduction. Dell also has manufacturing facilities in North Carolina, Tennessee, within the US and in Malaysia, Penang, China, Poland and India.
http://economictimes.indiatimes.com/Relax_Dell_skips_India_as_job_cut_target/articleshow/2981474.cms