Featured Articles

HP Stream is a Chromebook killer priced at $200

HP Stream is a Chromebook killer priced at $200

We have been hearing reports of a new breed of affordable Windows notebooks for months. It is alleged that a number…

More...
AMD Radeon R7 SSD line-up goes official

AMD Radeon R7 SSD line-up goes official

AMD has officially launched its first ever SSDs and all three are part of AMD’s AMD Radeon R7 SSD series.

More...
KitKat has more than a fifth of Android users

KitKat has more than a fifth of Android users

Android 4.4 is now running on more than a fifth of Android devices, according to Google’s latest figures.

More...
Aerocool Dead Silence reviewed

Aerocool Dead Silence reviewed

Aerocool is well known for its gamer cases with aggressive styling. However, the Dead Silence chassis offers consumers a new choice,…

More...
Frontpage Slideshow | Copyright © 2006-2010 orks, a business unit of Nuevvo Webware Ltd.
Tuesday, 01 April 2008 07:08

Dell announces closure of its Austin, Texas plant

Written by David Stellmack

Image

Drastic cost cutting measures

In a surprise announcement, Dell Inc. announced on Monday that it will close its desktop manufacturing plant in Austin, Texas, as well as cut costs in the areas of design, manufacturing, materials, manufacturing and operating expenses.

Dell said that its Austin, Texas desktop computer plant with 900 workers would close, as part of a broader plan to cut expenses by $3 billion annually within the next three years. Dell Inc. also reaffirmed its plan announced last year to cut at least 8,800 jobs, or approximately 10 percent of its work force.

Dell has already eliminated 3,200 of the targeted jobs in the last nine months of its fiscal 2008. According to a Dell spokesman, the Austin plant jobs will be eliminated in phases, while production will continue through Dell's fiscal fourth quarter.

This announcement comes after Dell bought out the final stake of its financing business from CIT Group, Inc. CIT Group is facing huge losses due to the credit market crunch/financial crash and faces the possibility of going under as a company. 

Dell also said it was reviewing "ownership alternatives" for its financing business, which extends credit to consumers and small and medium businesses through credit financing so that they can purchase Dell products.

Last modified on Tuesday, 01 April 2008 09:33

David Stellmack

E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
blog comments powered by Disqus

 

Facebook activity

Latest Commented Articles

Recent Comments