Beleaguered Dell to close Austin PC plant, cut thousands of jobs in cost-cutting effort

Beleaguered Dell said Monday it hopes to save up to $3 billion over the next three years via cost cutting and employee layoffs.

“The world’s No. 2 computer maker said it will close its desktop manufacturing facility in Austin, Texas,” The Associated Press reports.

“Round Rock, Texas-based Dell is also reaffirming its plan — announced last year — to cut at least 8,800 jobs, or about 10% of its workforce,” AP reports. “In the last nine months of fiscal 2008, the company cut 3,200 jobs.”

Full article here.

MacDailyNews Take: Instead of prolonging the misery, Mr. Dell should just shut it down and give the money back to the shareholders.

52 Comments

  1. If it weren’t for Michael Dell’s enormously fat mouth (with foot firmly inserted, still), I’d feel sorry for the company. However, and with that said, my present joy knows no bounds at this piece of news. Just ask Earl: Karma is a bitch.

  2. Funny, Steve jobs, in order to resurrect Apple, hired thousands of new employees and some new board of directors (it did fired Gil Armelio and some others, but not as much as Dell). And the company made money again with innovation and great products….. but Dell, they do not have great products or innovation, soy they can only fire employees to stay alive.

  3. My thoughts go out to the employees who will pay the price for Michael Dell and Kevin Rollins’ combined lack of vision.

    Several years back, I once had an argument on a thread here that lasted the best part of three days with some joker who was convinced that Dell were an exemplar of a successful PC manufacturing and distribution operation: of course, in sheer numbers, my opponent appeared to have a point. However, if you actually had the ability to think in multiple dimensions, it was relatively obvious that the profitability of that volume was going to lead to problems.

  4. Before we bathe ourselves in schadenfreude, please remember people are losing their jobs… Try some compassion on for size.

    I despise peecees as much as any Machead, but these are real people.

  5. It’s not a good thing when the only way Dell makes headlines these days is by announcing yet another cost-cutting measure.

    > but Dell, they do not have great products or innovation

    Dell’s innovation was in reducing operating costs, to sell adequate products for less than everyone else. Now that everyone else has caught up, Dell can’t do anything else but try to reduce costs even more. It won’t work forever.

  6. Who cares about Dell?

    They made their name as an efficient box stuffing operation and web store. Nothing more.

    Their idea of innovation was to add a swoopy curve to the face plate of a generic PC box. Ooooh, impressive.

    Eventually they will disappear. No tears shed here.

  7. This is not good for the “Weird City” (Austin)…in the economy we are already in. People wont me liking him or his wife. OUCH!

    MDN Magic Word: RAN

    They are going to wish they RAN away from Austin/Round Rock. ” width=”19″ height=”19″ alt=”smile” style=”border:0;” />

  8. What Steve Jobs says in this situation:

    “We’ve had one of these before, when the dot-com bubble burst. What I told our company was that we were just going to invest our way through the downturn, that we weren’t going to lay people off, that we’d taken a tremendous amount of effort to get them into Apple in the first place – the last thing we were going to do is lay them off. And we were going to keep funding. In fact we were going to up our R&D;so that we would be ahead of our competitors when the downturn was over. And that’s exactly what we did. And it worked. And that’s exactly what we’ll do this time”

    That’s why we are ahead.

  9. Can you imagine the press Apple would get it they bought up some of this stuff? Not the computers, but any warehousing and distribution, and maybe even manufacturing for a new Mini-Pro final assembly.

    I have no idea how Apple is set up for distribution around America, but I know they are going to be needing more and more.

  10. I feel bad for the thousands of people who trusted this jackass with their jobs and their livelihood. As happy as I am to see Dell go down in, it’s bittersweet knowing these people will suffer but Michael Dell will still live the good life.

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