Dell will be closing its Austin, Texas, desktop PC manufacturing plant by January of 2009. As a result, it will lay off between 800 to 900 workers who are employed there.
CEO Michael Dell was quoted that this represents "a $3 billion opportunity to drive both productivity and efficiency."
What he means is that the Austin plant shutdown is part of a plan to slash the said amount of expenses within three years. Already, Dell says it has eliminated 3,200 of the targeted 8,800 jobs, or about 10 percent of its work force so far. It wants to achieve the reduction within a year. The additional jobs eliminated here will now put Dell about halfway toward its goal.
Shares of Dell rose 31 cents to close at $19.92 on Nasdaq. It dropped and regained 25 cents in after-hours trading.
Michael Dell has been trying to remake Dell through various cost cutting as well as moving into new markets such as high-end consumer computers and laptops. This is amidst expanding its global footprint into China and even India.
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Paul Mah is a writer and blogger who lives in Singapore, where he has worked for a number of years in various capacities within the IT industry. Paul enjoys tinkering with tech gadgets, smartphones, and networking devices.