In order to meet that goal, Dell will reduce its product line. The company didn’t say which products would get the axe, the Associated Press noted.
The company says it will trim $800 million from its Sales Group and at least $600 million from its manufacturing plants and warehouses. Another $200 million will be saved through reduced administrative expenses, and $400 million will be pared from service delivery.
While company officials spoke of consolidating its sales group, no specific plans to lay off workers were suggested.
Dell shares slipped fractionally in early Thursday trading.
Both Dell and HP have seen their computer sales hit by rising consumer interest in mobile devices like Apple‘s (NASDAQ:AAPL) iPad.
On Wednesday, Dell said it will issue its first quarterly dividend ever. The dividends will cost Dell more than $560 million annually.