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Monday, September 08, 2008

Dell Selling Factories To Cut Costs

The Wall Street Journal is reporting that Dell is selling factories around the world in an effort to cut costs. According to “sources” Dell plans to sell most, if not all, its plants over the next 18 months and contract out the labor on its PCs.

The plan is the latest sign of changes in the global PC business, and the increasing pressure on Dell to improve its profitability. The Round Rock, Texas, company last week reported disappointing quarterly profit that helped send shares down more than 18%, and has been trying to reduce expenses since early last year. Dell, which led the industry in lean manufacturing approaches and build-to-order PC manufacturing, now finds itself lagging rivals in wringing the most savings by outsourcing operations to production partners.

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