Dell Announces $2 Billion Cost-Cutting Plan

The company will reduce the number of products it offers

   

Dell Computer (NASDAQ:DELL) says it will reduce expenses by $2 billion by 2015.

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.

Dell185 Dell Announces $2 Billion Cost Cutting Plan
Dell Still Doomed Despite Dividend

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.

Fellow computer maker Hewlett-Packard (NYSE:HPQ) said in May that it would cut about 27,000 jobs as it reorganizes.

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.


Article printed from InvestorPlace Media, http://investorplace.com/2012/06/dell-announces-2-billion-cost-cutting-plan/.

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