Beleaguered Dell axes 700 employees in its Malaysian plant

New iPod nano - NOW shoots video. “Computer maker Dell Inc. plans to lay off 700 workers from its Malaysian plant in northern Penang state in a bid to cut costs,” K.P Lee and Yun-Hee Kim report for The Wall Street Journal.

“The layoffs, which represent about 16% of its total work force of 4,500 in the country, will take place from January through June, Dell’s senior manager for corporate communications, Jasmine Begum, said Wednesday,” Lee and Kim report. “Ms. Begum said the layoffs are necessary as the company relocates the production of its computer laptops for the U.S., Canada and Latin America markets from Penang to other cheaper production facilities.”

“In the fiscal third quarter ended Oct. 31, Dell’s profit fell 54% despite signs of a recovery in the technology sector and while rivals such as Hewlett-Packard Co. saw profit growth,” Lee and Kim report.

MacDailyNews Take: HP’s net earnings for its fourth fiscal quarter ended Oct. 31, 2009 rose 14% year-over-year, however, in PCs, HP’s revenue declined 12%. Notebook revenue for the quarter was down 8%, while Desktop revenue declined 16%. A better example would have been Apple, whose Mac sales rose 17 percent YOY to a new record of 3.05 million units and whose net income grew 18 percent.

Lee and Kim report, “Dell has fallen behind its competitors in personal computers. It now ranks third behind Hewlett-Packard and Taiwan’s Acer Inc.”

Full article here.

MacDailyNews Take: Soon, Mikey will run out of places to cut. SIDAGTMBTTS.

15 Comments

  1. “Wow, there are places cheaper than Malaysia?”

    My thoughts exactly. What place is left? Cheap labor markets are cutting each others’ throats on the way to the bottom.
    (figuratively, of course ” width=”19″ height=”19″ alt=”wink” style=”border:0;” /> )
    And the tech pundits are drooling all over themselves at the plethora of cheap (<$250) computers.

  2. Haaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa…….(breath)aaaaaaaaaaaaaaaaaaaaaaa……!!!!!! (coughing !@$#$!)

    Whew!!…..if I was Michael Dell I would just give the stockholders their money back…..but it’d have icky Dell essence all over it…so i dunno.

    cheeze.

  3. Dell will have to open up a plant in Afghanistan – which is one of the most backward third-world sinkholes on the planet. You probably don’t have to be literate to slap together some PC parts, and the employees can be paid in goat’s milk.

    Or they could hire some primitive spear-throwing tribe in Africa or the Amazon. I can just see it now. Guys with bones through their noses and penis gourds down below – women with 18 inches of neck ring extensions and plates in their lips, all slapping Dell logos on plastic piece of trash running a craptastic Windows 7 OS. And you could pay them in shrunken heads.

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