“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.
Wow, there are places cheaper than Malaysia?
just what i was thinking; when you are moving out of malaysia because it is too expensive, you are really, really in big trouble.
p.s. i still own some dell stock so i am anxiously awaiting SIDAGTMBTTS.
I suppose it’ll be time for Mike Dell to close the doors and give the money back to the shareholders.
I really hate to see anyone lose a job though.
“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.
” width=”19″ height=”19″ alt=”wink” style=”border:0;” /> )
(figuratively, of course
And the tech pundits are drooling all over themselves at the plethora of cheap (<$250) computers.
…which ironically frees up more workers to build iPhones and tablets…
Haaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa…….(breath)aaaaaaaaaaaaaaaaaaaaaaa……!!!!!! (coughing !@$#$!)
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.
I’m forced to use a Dell at work. what a piece of crap.They are so slow , like death-lol Can’t wait to get home to my mac.
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.
@KenC
Redmond is always cheaper than Malaysia
Hmmmmm,
If the president of Dell fires 700 workers, he will save Dell enough money to pay for his SUV gas useage. So its a win-win situation.
just a weird thought for the day.
en
Where is production cheaper than Malaysia?
Bring it back to the US – I bet you can have the work done at a Texas prison, where you only have to pay the “workers” a dollar or two a day.
Circling the bowl, and now the resounding gurgle of the last plop gasping for air…
“Beleaguered Dell axes 700 employees in its Malaysian plant”
Putting Jason Voorhees in charge was a really bad idea.
I’m from Malaysia, and I can see many manufacturers getting out of Malaysia and into China and Vietnam, where the labor is relatively cheaper than Malaysia. The average wage here is around MYR700-800 (US$200+) whereas in Vietnam, it can cost 25%-30% less.
http://no-spamming/