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Dell plans harsh cutbacks in view of economic woes

updated 01:10 pm EST, Wed November 5, 2008

More Dell cutbacks coming

Dell is going to make even more drastic expense reductions than it originally planned a year ago, says spokesman David Frink. Although the company had previously set a goal of cutting $3 billion in annual expenses by 2011, which has so far resulted in the loss of nearly 8,900 jobs, Frink says the company intends to slash expenses further in order to cope with the global credit disaster. No new firings are expected, but a hiring freeze is being put into effect, and some workers are being pressured into taking buyouts or one to five payless vacation days.

Further steps are expected to include a reduction in contracting offers, lower travel allowances, and unspecified forms of "reprioritizing" for projects and capital spending. The company has also registered with the Securities and Exchange Commission to periodically sell debt securities.

Although Dell remains one of the most powerful computer vendors in the world, it has in recent times suffered significant financial problems, blamed on factors such as lower spending in Asia and Europe. It also faces intense competition from chief rival HP, and the growing prevalence of Apple computers, which while still a minor factor have been eating into the sales of all PC builders.



By Electronista Staff
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  1. MyRightEye

    Fresh-Faced Recruit

    Joined: Apr 2008

    0

    Ha Ha Ha Ha Ha Ha Ha

    Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Oh my.. Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha Ha...

  1. Guest

    Fresh-Faced Recruit

    Joined: Nov 1999

    +4

    shareholders.

    they should probably shut down their operations and give their money back to the shareholders. :)

  1. davidg

    Fresh-Faced Recruit

    Joined: Dec 2006

    +3

    Oh dear

    Perhaps he should close the company down and give the money back to the shareholders.

  1. davidg

    Fresh-Faced Recruit

    Joined: Dec 2006

    +1

    Oh dear

    http://tinyurl.com/5o9pt7

  1. JulesLt

    Fresh-Faced Recruit

    Joined: Jul 2005

    +3

    Laptops

    The problem is that although Apple are small, they're also taking the most profitable customers.

    Also with laptops Dell ARE the middle-man that they originally cut out of the deal, while the likes of Asus are Dell.

    The question, if I was a Dell shareholder, is not what their cost-cutting program is, but what their investment and growth program is.

  1. Monstermind

    Junior Member

    Joined: May 2000

    -7

    HAHAHAH!!

    Gee, I thought a Hussein presidency would prevent such a thing. Surprise, surprise...

  1. Guest

    Fresh-Faced Recruit

    Joined: Nov 1999

    0

    Was predicted in 99-2000

    This is what happens when you do not value good employees. Every lay-off had good people - simply because of politics.

    Stupid middle managers used to say we could out source our development. Now do you think there would have been an ASUS, Quanta and others if Dell did not pass all their crown jewels like it was peanuts.

    Engineers and techs understood what was happening. Middle and upper management only thought of two years down the road and stock price -so they could pump and dry the market.

    Actually we should have all worked for Apple -at least they say proudly designed in U.S.A. -even though it is still made in China. I think Dell will go Gateway way.. may be bought by Lenovo

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