By Zanub Saeed
Dell Inc. announced this week that they would be making over $2 billion in cuts between now and 2015 as a means to consolidate their funds and make more lucrative supplies for consumers.
Dell broke down had the cuts would be made, and said $800 million would be saved from expenses from Dell's sales groups, $600 million would be cut from Dell's factories and other aspects of its supply chain, $400 million would be deducted from Dell's service delivery, and the finale $200 million would be taken from its general and administrative spending, said the Associated Press.
There is no word yet on whether the massive cut includes employee layoffs. However, a presentation made by Dell on Wednesday, for analysts and investors of the brand, noted that there would be a "consolidation" of sales support, said the AP, which they implied could lead to future layoffs. At the present time, Dell, whose headquarters are based in Round Rock, Tx., employs nearly 109,000 workers.
In terms of production, Dell is expected to make fewer products, especially as it is feeling an economic pinch from poor sales of its computers, many of which can be purchased in major electronics franchises like Best Buy, Staples, and Office Depot. Sales have decreased due to the popularity of tablets and smartphones in recent years, where consumers would rather purchase Google's Androids from brands like Samsung, and Apple's iPads and iPhones, said the Associated Press.
Dell has purchased software and equipment to better facilitate itself to expand its products beyond the personal computers. The company, said the AP, will be looking to spend less time on making personal computers and catering to small businesses, and more on advising larger companies and agencies to assist with their technological needs. Through this possible expansion, Dell also plans to sell more computer software and equipment, said the Associated Press.
Dell decided to also finally play its first quarterly dividends since its opening 28 years ago, which they chose to do so the day after announcing they will make the $2 billion cut across the corporation. The quarterly dividends of 8 cents per share, said the Associated Press, would cost Dell well over $560 million yearly.
