Printed from http://www.electronista.com

Dell plans $2B in cost cuts as PC sales continue to slide

updated 03:12 pm EDT, Wed June 13, 2012

Sales group to be hardest hit

Dell has announced plans to slash its expenses by more than $2 billion over the next three years, as the computer maker struggles to adapt to the transforming market. The majority of the cost cuts will be focused on the sales group, while optimizations within the supply chain are expected to bring approximately $600 million in savings.

In a meeting with analysts, CEO Michael Dell acknowledged that the industry is "constantly in transition" and the company views software as "an area where we can grow rapidly." A shifting strategy will place more importance on partners and less focus on owning products in each category.

The company last month reported a 33 percent fall in profits, as revenues from the consumer division continue to slide year-over-year. Revenue from enterprise sales and small- to medium-size businesses showed an increase for the quarter, though not enough to compensate for the falloff in consumer PC sales.

Competitor HP has encountered similar difficulties, pushing the company to reduce its workforce by 27,000 employees by the end of 2014. The company expects to achieve at least $3.5 billion in savings from the layoffs and other restructuring plans, enabling expanded investment in cloud, big data and security segments.

Dell has yet to detail the number of employees that will be displaced as part of the cost-savings plan.



By Electronista Staff
Post tools:

TAGS :

toggle

Comments

  1. peter.c

    Fresh-Faced Recruit

    Joined: Sep 2009

    +2

    You get what you give.

    While Dell still has reasonable equity, I think they should sell their assets, close down and return the money to their investors.

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

ActvContent Sync Smartband

Smartbands of all sorts are hitting the market. Some build on the buzz around fitness trackers, while others offer simpler features fo ...

RocketStor 6324L Thunderbolt 2 eSATA bridge

Like it or not, the shift to Thunderbolt is underway. The connection is extremely flexible, allowing for video and data to co-habitate ...

Patriot Stellar Boost XT 64GB USB 3.0 drive

A vast selection of USB memory sticks means that consumers can often find exactly the size drive they need in a configuration that can ...

Sponsor

toggle

Most Commented

 
toggle

Popular News