April Fool’s Day is a bad day to announce a major strategy shift. Case in point: Dell announced today that the company will slash US$3 billion in costs over the next 3 years, according to PC World via Yahoo and Engadget. This includes eliminating 5600 jobs on top of an previously announced cut of 3200 positions.
Dell will also close a desktop computer manufacturing plant in its headquarters city of Austin, which accounts for 900 of the lost jobs according to the Austin American-Statesman. Desktop computer sales continue to flag while Dell shipped 37% more portables during the fiscal year.
Dell Financial Services may be sold or spun off. DFS provides consumer and business financing for computer hardware and software sold through Dell’s direct sales channels.
Dell is preparing ahead, as computer hardware manufacturers tend to lead the economy out of recessions.
