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Dell eyes $3 billion in cost savings

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 close 140 kiosks "to improve" competitive advantage and "to rationalize" operations. Dell believes that selling direct to retailers instead of using kiosks to capture customers' interest will help the company increase revenue.

Continue reading Dell eyes $3 billion in cost savings

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