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.
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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.
Common (Ayn) Randian logic to feel sorry for the corporation, and not for the workers in our world . . .
Poor Dell.
He thinks adding color will make his computers cool.
Just another low price box company with terrible customer service.
I feel sorry for them.
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.
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.
It’s never good when people are forced to the unemployment line due to incompetence. With that said…
Last one to leave please shut the lights off. Thanks Mikey.
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.
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.
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.
Lay offs suck. Greed sucks too. If Dell is the #2 PC maker why do lay offs? Only good thing about Dell is that do manufacturing in the USA and not Tibet Killing China.
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.
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“iMac, bitch!!”
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.
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.
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.
I feel very badly for the people that will lose their jobs. I really and truly do.
But that smug bastard Mikey Dell won’t suffer one bit.
However, this is a sign that people are buying more Macs and less and less of those crappy Dells.
Buy a Dell, burn in Hell!!
My wife lost her job with Dell. I warned her to leave as the writing was on the wall. It is and always will be a piece of shit company with piece of shit products. I hope the company implodes and Dell is reduced to selling something else out of his garage like cactii or t-shirts.
My wife and I just signed up for a Clear card, the TSA program that will supposedly let us get in shorter security lines at various airports.
The biometric system was encased in a fancy kiosk that ran on Windows XP and Dell machines. It took forever (and several reboots, I kid you not) for the system to collect our fingerprints and iris scans. At the adjacent kiosk, the poor souls had to unlock the whole kiosk and throw the power switch to allow a frozen system to reboot. (For some reason, between each person the system had to be rebooted….) I won’t tell you the number of cryptic error messages the people manning the Clear booth had to click through to get the system to work.
Here’s an idea. Apple could take over the facility, working with its OEM partners. Locals would have jobs making products they can be proud of, Apple would bring production closer to its customers, and I could buy an Apple product that’s not Made in China. We could all gather round as the Dell sign comes down, and Apple’s goes up.
Who’s gonna build Dell desktops now? The same quality people who do their phone tech support?
Strong sell, baby.
<b>YES!!!<b>
Should that happen, I’ll be on site as well.
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Give the money back to the stockholders, Michael.
You’re toast.
hmmm. I like the idea of Apple taking over the facility and giving people jobs, if only because Apple, as much as I love Apple, is basically a front company for the Chinese industrial machine. Apple designs great products and then hires Chinese companies to build them. Chinese companies are likely paying their workers about $1.50/ day while Dell is likely paying the workers it’s laying off $10-18/ hour. Plus benefits. So, Apple do share the wealth. Share it with the American worker. Build something in America.
I always think it’s funny how companies believe they will “save money” by cutting employees. These “savings” assume that sales will remain at the same level or increase.
How will Dell keep producing and selling the same number of PCs with 8,000 fewer employees? Good frickin’ luck.
Actually, Randian logic would focus on the individual, not the corporation, and what their accomplishments are/were. I’m not sure why you put that comment in there to begin with. What does Dell have to do with Ayn Rand anyway? Dell was very successful (financially) for a long time, but they’re tied to an OS that’s reached saturation, and is now going the other direction. The OS is very second-handed and lacks innovation compared to alternatives (particularly OS X), and his hardware is not technologically very impressive compared to other hardware. It’s hard to imagine Miss Rand (or anyone) being especially inspired by Dell’s products. At least HP and other Windows PC makers invent products, as does Apple.