Dell To Save $3B Over 3 Years

H

HardOCP News

[H] News
Joined
Dec 31, 1969
Messages
0
Dell announced today that it will close its desktop manufacturing facility in Austin, Texas as part of an overall plan to save three billion dollars over the next three years. All total, the company will cut almost nine thousand jobs.

Dell Inc. is also reaffirming its plan -- announced last year -- to cut at least 8,800 jobs, or about 10 percent of its work force. In the last nine months of fiscal 2008, the Round Rock, Texas-based company cut 3,200 jobs. The company plans a broad range of cost cuts in design, manufacturing and logistics, materials and operating expenses to stay competitive.
Click to expand...
 
Let me guess? Operations are opening up abroad somewhere where workers earn $3.00 a day?
 
Actually they have a factory in ireland.
Limerick to be exact.
Its a horrible job, no one I know would ever want to work their, they pay the lowest wages and get monkeys to work for em.
 
F' Dell. Their phone support is terrible to non-existent, and now they're moving more manufacturing overseas? Bah.
 
At least one thing you could feel good about (not that there is a lot) when getting a Dell Desktop is that it was made in the U.S. by real Americans. Now it's just like any other name brand box out there. Dell just told American workers FU! :(
 
There is now 9000 people in Austin that will not be buying a Dell.
 
I may just be a peon Network Specialist, but I work for the state of TX and my little dept orders about 1k desktops a year (from dell). I may not be able to do much but I can at least question WHY we buy dells. We sure dont save any $$$ by doing so.

I could at least say we supported TX jobs before.
 
i'm from alberta, canada (red deer actually) and edmonton (the capitol of the province) had a dell call center...a modest size...900 people....

turns out 14 months ago the managers went to malaysia, they were told it was to help their call center get up to par with edmonton's....and just like two months ago....guess what? edmonton's call center closed down and those very managers that went to malaysia are now laid off...

lifes a bitch eh?
 
Wow, they must be really counting on getting more market share on the server side to make up for the loss of sales they will take by moving productions overseas.
Although, it's another con of buying a Dell I can use to support my build as a hobby business. It really hits a sour note when things like this are pointed out to people here in Ohio.
 
Are the systems going to built overseas now, or just another plant in the U.S.? If they cut 9,000 jobs in the U.S. to move them to another country then I don't think I want to buy their products anymore. Then again, what manufactures build their P.C.'s in the U.S.? Then again the components og computers are built in other countries...
 
Hmmm, sounds like they should just buy eMachines from Gateway and they'd have the crappy boxes it sounds like they want to build without retooling! If they bought Gateway also, why they'd have two lines of crap pre-made!
 
Whoa whoa whoa.... You guys are forgetting about Michael Dell in all this! How is he supposed to continue living his opulent lifestyle without a constantly increasing stock price? It's not like he can cut out charitable contributions - as I recall, he gives little. Let's not let a measly 9000 people (who I might remind you are now free to become knowledge workers) let us lose focus of the one important person in this whole equation.


Yeah.... Now that I pointed it out, you all feel pretty bad...

*( I was laid of by Dell in 2003 )
 
First, I have to say that I like Dell, but how can a company like this systematically move all of its processes overseas and the consumers here still buy them? Are we going to wait until Dell products truly are toilet fodder before we change our minds and buy something else? We (referring to specifically to most [H] readers) have the luxury of building rigs a-la-carte to our likes and specifications. What is worse though, consumers buying crap and not knowing it, or your FRIENDS buying crap and asking for your help when it inevitably craps out on them? I get a little worked up when this happens especially when our economy needs it. And what is even the icing on the cake, their stock goes up!
 
The Ireland facility is not going to make product for the US. Too costly, and takes too long and costs too much to get it to the US.

My bet is they have a Mexican operation already running.
 
Guys, help me out here.

Where does it say they are opening a plant up over seas?

Dell says it will save as much as $3 billion over the next three years as it cuts costs and lays off workers.

The world's No. 2 computer maker said Monday it will close its desktop manufacturing facility in Austin, Texas.

Dell Inc. is also reaffirming its plan -- announced last year -- to cut at least 8,800 jobs, or about 10 percent of its work force. In the last nine months of fiscal 2008, the Round Rock, Texas-based company cut 3,200 jobs.

The company plans a broad range of cost cuts in design, manufacturing and logistics, materials and operating expenses to stay competitive.

Dell is also reviewing alternatives for its financial services business, especially its consumer and small to medium business revolving credit financing receivables.

Shares of Dell rose 31 cents to close at $19.92. They added another 28 cents to $20.20 in aftermarket activity.
Click to expand...

Does anyone realize how much opening a plant up over seas would NOT work for Dell? They build and ship to order. UPS from China would be very expensive. And shipping a bunch of them via a shipping crate would take a month on top of the week of UPS after it got to the states.

So they closed down a plant. It happens, they sell less PC's so what are they supposed to do with workers they don't have work for?
 
yes, I guess "right-sizing" your company to match actual market conditions isn't allowed anymore. Tell that to the UAW who had the American Auto industry in a death grip by not allowing them to close down excess capacity. Dell used to be big, but new efficiencies in manufacturing along with a drop in demand means they have excess capacity.

I will also vote for the "Dell's are crap" but I have seen alot of them through the years and not many have been true crap.
 
You ask your employees to loyal too you... Soon as trouble hits, you fire them. I hope Acer and HP kill Dell in the next few years.
 
I used to recommend Dell to people. About 5 years ago their consumer tech support went to SH*T. I now tell people to avoid Dell. Walking through 3 levels of tech support you can't understand, all reading from 'trouble-shoot notebooks', to get a simple question answered just plain sux.

I live in Austin, less than 10 miles from their headquarters, and I see little to no reason to support them as a 'local' company.
 
Brantoc said:
The Ireland facility is not going to make product for the US. Too costly, and takes too long and costs too much to get it to the US.

My bet is they have a Mexican operation already running.
Click to expand...
Or a North Carolina operation. I know it's not [H]ard to stick up for Dell, but people in here are a little bit too eager to think the worst.
 
Met-AL said:
Does anyone realize how much opening a plant up over seas would NOT work for Dell? They build and ship to order. UPS from China would be very expensive. And shipping a bunch of them via a shipping crate would take a month on top of the week of UPS after it got to the states.

QUOTE]

They do that now. Laptops are made in malysia (or at least everone that we have ordered for work is) and sent here to the USA. We once had a laptop that we were trying to get rushed shipped to us and were told we had to wait for it to enter the USA before they could rush the shipping. We are in Indiana. Which means that laptop had a nice trip to get to us.
Click to expand...
 
Nice, they sold Americans on the basis that it was a real American company, now look at them.
 
FalseGod said:
Dell has more than one U.S. Manufacturing facility. A quick google would have told you guys this.

"While many technology companies have outsourced design and manufacturing, Dell continues to strengthen its production capabilities. The North Carolina facility adds to the company's considerable U.S. manufacturing presence in Central Texas and Middle Tennessee."

http://www.dell.com/content/topics/global.aspx/corp/pressoffice/en/2005/2005_10_05_ws_000?c=us&cs=555&l=en&s=biz
Click to expand...

The cost of living is much higher in Austin than in NC (I have lived in both places) which means they can pay their NC workers less.

That Dell press release btw is several years old.:rolleyes:
 
Here's a thought.

Why doesn't Michael Dell chip in the 3Bill and take a pay cut.

The guy can afford it.

He'll save all those peoples jobs and look like a hero.

Because right now he looks like an ass!
 
For the same reason why you aren't chipping in your money to save their jobs.
 
dopexile said:
For the same reason why you aren't chipping in your money to save their jobs.
Click to expand...

He's not the one making the cuts either.


And yes, we are all technically chipping in... as a lot of those workers would need to go under unemployment assistance.
 
I wonder if the top brass decided to give themselves a deserved pay cut.(righttttt) :mad:
 
Oldwolf said:
Because right now he looks like an ass!
Click to expand...

Maybe he looks like an ass to you. But he would look like an ass to allot more people such as share holders if he didn't do anything to save the company and it became the next Gateway.

You guys all act like companies like Dell should be charities. They exist to make profits that drive our economy.

So would you rather Dell keep the Austin plant open so the employees there could sit around and do nothing since there is not the work to keep them working or would you rather Dell do the hard thing and close a plant and hopefully return to profits?

What about the rest of the Dell's employees? Should we put them in jeopardy to make you think Michael Dell is a hero?
 
Met-AL said:
Maybe he looks like an ass to you. But he would look like an ass to allot more people such as share holders if he didn't do anything to save the company and it became the next Gateway.

You guys all act like companies like Dell should be charities. They exist to make profits that drive our economy.

So would you rather Dell keep the Austin plant open so the employees there could sit around and do nothing since there is not the work to keep them working or would you rather Dell do the hard thing and close a plant and hopefully return to profits?

What about the rest of the Dell's employees? Should we put them in jeopardy to make you think Michael Dell is a hero?
Click to expand...

A lot of CEO's takes a $1 salary to show solidarity with the workers. Sure they have stock options, but it's better than noting.

You make it sound as if profits are what's driving our economy, it's not, jobs are... especially those we keep inside of this country. Hording billions of dollars due to profits does nothing, the only thing it does is moves up the CEO's worth a page on the Forbes 500.
 
With the cost of supplementing workers with benefits, ect... It's no wonder everyone is moving out of the country to run their high-staff facilities. I don't blame them and I do not blame Dell at all.

Unless we get a new president that fixes these bullshit laws and tactics we have currently, no one is going to want to run a big business in the USA. Costs are just too high.
 
Duh. Layoffs always save money, just go look at the projections.

If only the future had a stake in the present, this might not have happened.
 
lt_shiro said:
You ask your employees to loyal too you... Soon as trouble hits, you fire them. I hope Acer and HP kill Dell in the next few years.
Click to expand...

Old_Way said:
I used to recommend Dell to people. About 5 years ago their consumer tech support went to SH*T. I now tell people to avoid Dell. Walking through 3 levels of tech support you can't understand, all reading from 'trouble-shoot notebooks', to get a simple question answered just plain sux.

I live in Austin, less than 10 miles from their headquarters, and I see little to no reason to support them as a 'local' company.
Click to expand...


Agreed.Funny thing is here in Ottawa Dell is fast expanding,and is on a hiring spree.


anime4u said:
I wonder if the top brass decided to give themselves a deserved pay cut.(righttttt) :mad:
Click to expand...

No,but you can be damn sure they'll be awarded huge bonus's for all the back stabbing they did with this latest announcement ! I never reccomend Dell,and never will.Its crap
like this that drives me away from suggesting companies like Dhell to friends and family.
 
Manny Calavera said:
No,but you can be damn sure they'll be awarded huge bonus's for all the back stabbing they did with this latest announcement ! I never reccomend Dell,and never will.Its crap
like this that drives me away from suggesting companies like Dhell to friends and family.
Click to expand...

Dell is far from crap, what the fuck are you smoking? I'm surprised both of my Dell laptops have lasted this long after all the abuse they've taken! I have a 9300 that was the king of the hill back in it's time, and a Dell D810, they've fallen off my chair, couch, and still work perfectly.

Most of you bitching about Dell's quality have never own a Dell product!!!
 
You must log in or register to reply here.
Back
Top