Dell Looking to Make 2 billion cost cuts
Another superstar in information technology is struggling to keep up with the highly-competitive nature of the sector.
At a conference in Austin, Texas on Wednesday, a spokesperson for computer maker Dell Incorporated announced that the company is planning on making over $2 billion in cuts over the next three years.
Trying to keep up with consumer interest in smartphones and tablets has been difficult for the lauded laptop manufacturer. Personal computer sales have been weak across the industry. Diversifying into software and service provision in conjunction with hardware manufacturing and development has been the recent strategy for the corporation started in the Lone Star state by Michael Dell.
The first round of expense-slashing will be focused on the sales division which is target to shed over $800 million. Another $600 million will likely come from reductions in Dell’s supply chain.
On the bright side, the day prior to the cost-cutting news, investors were told they will see Dell’s first quarterly dividend. Shares of Dell shot up by four percent.