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The world's second largest computer maker announced yesterday that it would close the doors of a desktop manufacturing plant in Austin, which involves laying-off 900 of 17,500 workers. The company's move is aimed at cutting expenses, which should result in $3 billion savings over the course of the next three years.
The decision is part of a strategy announced last year, with a target of cutting at least 8,800 jobs, or about 10% of its work force. Thus, the computer maker axed 3,200 jobs during the last nine months of the company's fiscal 2008.
As part of its cost cutting, Dell
The company will seek the $3 billion in savings by slashing production costs in all areas, from design, manufacturing, logistics, materials, and operations. Dell is also considering selling its financing arm, Dell Financial Services.
Dell's strategy to save costs seems promising for the computer maker's goal to efficiently compete against its rivals. The competition has become even tougher with the slowing U.S. economy adding pressure on consumer spending. However, the company's decision will dissatisfy many people, especially those who lose their jobs.
Eliza Popescu is a financial writer for the online investment advisory service Investor's Observer.
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