Austin Gets Spanked

[sgrizzle]

Things aren't always rosy in Austin:

http://www.dallasnews.com/sharedcontent/dws/dn/latestnews/stories/040108dnbusdell.1be6ad8c.html

quote:
Dell to close Austin computer factory, lay off thousands worldwide

05:05 PM CDT on Monday, March 31, 2008

By ANDREW D. SMITH / The Dallas Morning News
asmith@dallasnews.com

Dell Inc. expects to save $3 billion a year by closing a desktop computer factory in Austin and laying off thousands more workers around the world, the company announced Monday.

The Round Rock, Tx.-based computer maker reiterated its intention to cut at least 8,800 jobs – about 10 percent of its workforce worldwide. It has already cut about 3,200 positions in the past three quarters.

Dell will close its Topfer Manufacturing Center by Jan. 1, cutting about 900 of its 17,500 Austin-area positions in the process.

"The actions Dell will take during fiscal 2009 and beyond are expected to position the company to further accelerate growth in its five focus areas: global consumer, enterprise, notebooks, small and medium enterprise and emerging countries, while improving profitability and cash returns," the company said in a statement that came after markets closed.

"In addition, the company will take further actions to reduce total product costs across all areas, including design, manufacturing and logistics, materials and operating expenses. Dell expects that the initial benefits from these actions will begin to be realized in the second half of this fiscal year."

The $3 billion savings come to more than 5 percent of annual operating expenses for Dell, which has come under pressure from investors and analysts to cut costs.

And further steps are under consideration.

For example, Dell will decide by the end of the third fiscal quarter whether it should sell its Dell Financial Services unit.

[Renaissance]

Ouch.  Hopefully Dell stays reasonably healthy.  If they were to fold it would have an effect on Austin similar to the Tulsa oil bust of the 1980s.

[safetyguy]

Glad to know that I am not the only one who received notice today that their position had been eliminated thanks to downsizing!!

Life is good [xx(]

[Breadburner]

Dell sucks....

[Conan71]

It's only 5% of their Austin workforce, 900 jobs.

The headline makes it sound far worse than it is.

[sgrizzle]

quote:Originally posted by Conan71

It's only 5% of their Austin workforce, 900 jobs.

The headline makes it sound far worse than it is.

Still 12,000 less people employed by Dell in a year's time.

[RecycleMichael]

Dell stock has lost 50% of it's value in five months.

[TulsaFan-inTexas]

Their computers absolutely suck anymore, that's probably why. I say this as I sit here typing on a Dell Inspiron 531S.

[Conan71]

quote:Originally posted by sgrizzle

quote:Originally posted by Conan71

It's only 5% of their Austin workforce, 900 jobs.

The headline makes it sound far worse than it is.

Still 12,000 less people employed by Dell in a year's time.

And if 8000 of the losses are from call centers in India, consider it a blessing.

My Dell laptop is a POS.  It's pretty much still running only due to 200 MPH duct tape and bailing wire.  Okay, slight exaggeration, but only slight.  It's due for replacement.

[cannon_fodder]

quote:Originally posted by safetyguy

Glad to know that I am not the only one who received notice today that their position had been eliminated thanks to downsizing!!

Life is good [xx(]

Where do (did) you work safetyguy?  I'm sorry to hear that and hope things turn around quickly.
- - -

And +1 on Dell sucking now.  Their computers were always OK but the service and pricing was good (they actually came out free of charge in a 1 day to replace a failed HD back in 1999/00).  Now the pricing is merely competitive with everyone else and their service has fallen off.

Off brand computers use all the same components (WD hard drive, Intel/AMD boards and chips, some MICRON sub chips, Centon/Kingston RAM, Radeon/Nvidia graphics cards and an LG/Hitachi/Panisonic  manufactured monitor (stick whatever label you want on these components) and are 20% cheaper.

[safetyguy]

quote:Originally posted by cannon_fodder

quote:Originally posted by safetyguy

Glad to know that I am not the only one who received notice today that their position had been eliminated thanks to downsizing!!

Life is good [xx(]

Where do (did) you work safetyguy?  I'm sorry to hear that and hope things turn around quickly.
- - -

I worked for the Corporate Safety Office of the American Red Cross as a Safety Consultant for the Red Cross locations.

If anyone knows of any safety positions in the Tulsa area send me a PM, thanks!!

[sgrizzle]

Never would've guessed you were a safety.. guy... oh.