Dell To Trim $2 Billion Over Next Three Years, Refocus Efforts On Software
Dell on Wednesday announced plans to slash $2 billion from the company’s expense sheet over the next three years, cost cuts that will allow the PC manufacturer to remain competitive in a market that has shifted much of its sales attention towards mobile devices and tablet computers.
The company is expected to cut down the size of its sales group while optimizing the supply chain in an effort to save $600 million.
Speaking to analysts CEO Michael Dell said his company fully understood Dell’s need to compete in an industry that is “constantly in transition” while he pointed to software as “an area where we can grow rapidly.”
If Dell’s acknowledgement of forming more software and systems based products sounds family that’s because it is a similar move that IBM made in the mid 1990′s and early 2000s as the company watched its PC market dwindle, ironically because of Dell and HP computers, both of which are now struggling in that particular segment.
Much like Dell competitor HP has announced plans to cut its own workforce by 27,000 employees by the end of 2014, a move HP executives say will help save $3.5 billion in expenses when combined with other restructuring plans. HP has said it will invest heavily in cloud, big data and security systems.
Dell at this time has not revealed how many employees it will fire or how it plans to restructure the rest of its operations moving forward. If Dell plans to move more towards the enterprise side of the business spectrum one thing is for certain, they don’t have their work cut out for them as they compete with the likes of IBM, Alcatel-Lucent and even IBM.