Dell Planning $2 Billion In Cuts (Republican led company won't admit that the bulk will be jobs) [View all]
Source: Huffington Post
NEW YORK — Computer maker Dell Inc. is planning to trim its expenses by more than $2 billion during the next three years as it tries into move into the more lucrative fields of technology.
Dell outlined its cost-cutting plans Wednesday, the day after the company committed to paying the first quarterly dividend in its 28-year history. The quarterly dividend of 8 cents per share will cost Dell more than $560 million annually.
The bulk of the projected savings will come from Dell's sales group, where the company plans to wring out about $800 million in expenses. Another $600 million in cuts are envisioned in Dell's factories and other parts of its supply chain. The remainder of the cost-cutting will be concentrated in service delivery ($400 million) and its general and administrative spending ($200 million). As part of the belt-tightening, Dell expects to make fewer products. Management didn't identify which of its current products might be jettisoned.
The company, which is based in Round Rock, Texas, also didn't say whether it will be laying off workers or eliminating jobs through attrition to save money. Wednesday's presentation for analysts and investors mentioned "consolidation" of sales support, a winnowing process that often leads to layoffs. Dell currently employs about 109,000 workers.
Read more: http://www.huffingtonpost.com/2012/06/13/dell-cuts-2-billion_n_1594123.html
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