MacDailyNews - Where Mac news comes first

 MacDailyNews Poll

5 Day Most Commented

Opinion Archive

Current Headlines

Latest Joy of Tech

  • Latest Joy of Tech!

MacNN

AppleInsider

Macworld UK

TUAW

MacRumors

Yahoo! Finance AAPL

iTunes Top 10 Albums

Mac OS X Downloads

Wed, Jan 07, 2009 - 02:40 PM EST  —  AAPL: 91.11 (-1.91, -2.05%)  |  NASDAQ: 1599.07 (-53.31, -3.23%)

Beleaguered Dell to axe more than 8,800 jobs initially targeted
Friday, April 04, 2008 - 12:03 AM EST

"Dell plans to cut more jobs than the 8,800 it had targeted as it seeks to reduce expenses by at least $3 billion annually by 2011, Chief Executive Michael Dell said Thursday," Reuters reports.

Dell, "will 'go past' the job-cutting goal it first announced in May, 2007, the CEO said near company headquarters in Round Rock, Texas, at the company's first analyst meeting since 2005," Reuters reports. "'We are not satisfied with the current state of affairs and are on a mission to fix it,' said Dell, 43. 'Every area of the company is being pursued' for cost cuts."

MacDailyNews Take: Bad luck with that, Mikey. Hey, here's an idea: why don't you just shut it down and give the money back to the shareholders (while you still have money to give)?

Reuters continues, "The company on Monday said it planned to close its desktop PC manufacturing plant in Austin, Texas, and eliminate about 900 jobs there."

"Michael Dell said the company will end the current year with lower operating expenses than in the previous year. He said job cuts are continuing in the current quarter after 5,500 positions were eliminated, for a net reduction so far of 3,200 jobs when counting positions added through acquisitions," Reuters reports.

Full article here.

Jim Kerstetter blogs for CNET, "Dell's issues go a lot deeper than managing expenses, and adding a line of nicely colored laptops and a new ad agency, as Dell has done, won't make them go away. In short, Dell just isn't cool anymore, and it probably never was."

MacDailyNews Take: Forget "probably," Dell definitely never was cool.

Kerstetter continues, "Tech pundit Nicholas Carr predicted Dell's current predicament more than three years ago... For people who want to understand how the computer industry works (and how in many ways it's not all that different from other industries), the column he wrote for BusinessWeek should be required reading. Carr compared Dell's run in the 1990s to Ford's early success in the auto industry."

"Ford was out-innovated by General Motors, which understood consumers wanted style, taste, something that represented who they are. That's something Apple has always understood about its customers. Even HP got a handle on this several years ago. By 1926, GM's Chevrolet was taking market share away from Ford. By 1927, Chevys were outselling the Model T," Kerstette writes.

MacDailyNews Take: Ford vs. GM, Ford vs. GM... hmmm, now where have we heard that before? Oh, yeah, we wrote it first. Three weeks before Carr. He took it in some new directions and applied it to Dell instead of Microsoft, but, of course, he did have the luxury of those three weeks. We guess it's nice to know he was reading us at least as far back as January 2005. Yeah, yeah, we know: it was all just a coincidence.

Full article here.

Don Reisinger blogs for CNET, "How can a company that sat atop the entire computing industry for so long become a shadow of its former self in just two years? Is it that Dell has had a string of bad luck or did Hewlett-Packard, Acer and the rest finally find a way to take the company down?"

Reisinger writes, "Sadly, it looks like the latter."

MacDailyNews Take: What's sad about it?

Reisinger continues, "At this point, Dell is in deep trouble. The company's stock price has plummeted in the past six months and, although it's turning a profit each quarter of well over $200 million, its practice of selling computers just doesn't work anymore."

MacDailyNews Take: Perhaps our April Fool's Day article wasn't a joke, but instead a news item from the future?

"The company may be able to turn things around in retail outlets, but the computer industry has quickly become a commoditized business where a Dell desktop is the same as an equally equipped HP computer. Realizing this, a price war has emerged and so far, Dell has come out on the losing end in many of these battles, which tells you exactly why it's trying to reduce overhead and maintain costs at a far more manageable level," Reisinger writes.

"Sadly, there's not much more Dell can do. In an environment where margins are extremely low and companies are forced to find innovative ways to entice customers, Dell is fighting an uphill battle. And although its revenue has grown, its growth has slowed to a crawl and things may get worse if they ever get better," Reisinger writes. "Trouble is on the horizon for Dell, and if you ask me, that's a sad development."

MacDailyNews Take: Again with the "sad." Who the hell is sad? We're having a freakin' party here! What, does Reisinger still own shares in that mess? If so, we can see the "sad." Otherwise, who cares? Another dime-a-dozen PC box assembler will take Dell's place, as has happened many, many, many times before. Only the names change.

Full article here.

[Thanks to MacDailyNews Reader "amex" for the heads up.]


  • Social Web
  • E-mail






Always -- Free ground shipping with orders over $50 at the Apple Store.

Reader Feedback: ( = registered)

Apr 03, 08 - 11:13 pm Comment from: Alex's Dad

Finally, a first post.

Mr. Dell, my son is a Mac user and will never ever buy one of your computers.
Hopefully his generation will undo the damage ours inflicted.

Apr 03, 08 - 11:19 pm Comment from: Mr. Reeee

If CHEAP is cool, then Dell WAS cool. Damn cool.
Dell is cool… like stepping in a pile of dogshit cool.

Cheesy PeeSea generic DOSBox™ stuffers are a dime a dozen… maybe less. They come and go like the tides. Dell was lucky enough to outlast quite a few of them. But it's time for Dell to go.

Be careful that the door doesn't hit you on the way out Mikey. Maybe Ballmer will give you a ride to the shelter…

Apr 03, 08 - 11:22 pm Comment from: Crabs

@ Alex's Dad

Hilarious, and brilliant. Hilarious and brilliant. Thumbs up.

Apr 03, 08 - 11:31 pm Comment from: Cullen Factor

There will be a special place in Hell for Michael Dell…right next to Bill Gates.

Apr 03, 08 - 11:43 pm Comment from: atari

I still have my old Dell Inspiron 3200, upgraded with a PII-400mhz processor, running Windows 2000. It's my Dreamcast disk-burning machine, since I can't burn multisession DC cds on the Mac when I need to test my code. Paid $3200 for it back in 1998, a few months before I bought my Wallstreet and gave it to my now ex-wife. The damn thing has never given me trouble, but then again, the same laptop (TS30H) was released by ten different companies under different names.

From what I hear, Dell hasn't put out a reliable machine since then. But I wouldn't know. I've used Macs ever since...

Apr 03, 08 - 11:44 pm Comment from: Randian

Watch out, MDN'ers . . . the bleeding hearts of recent posts are just lying in wait to tear you all a new one for your lack of empathy here. "Boo hoo, sob sob, people are losing their precious jobs; won't someone please think of the children?!" they'll cry in a most lamentable chorus. You'd better cut and run now, folks, and apologize for anything harsh or derogatory you may have ever said or written about Mr. Dell and his beleaguered employees.

Apr 03, 08 - 11:51 pm Comment from: dijonaise

osborne pc

Apr 03, 08 - 11:55 pm Comment from: Mr. Reeee

Inspiron:

nagram:

InPrison

Apr 03, 08 - 11:58 pm Comment from: ➨ ☝ ♬♬☟ ⬅

"Beleaguered Dell"

I never get tired of hearing that shock

Apr 04, 08 - 12:42 am Comment from: Willie G

You know.. as much as we all hate Dell, and want nothing more than for the company's namesake to get what is coming to him... it is sad that so many people are loosing their jobs. The economy is already weak, the job market is tight, and unemployment rising is not going to put us on the road to recovery.

Apr 04, 08 - 12:42 am Comment from: local news

the cbs station, keye ch 42, here in austin, tx did a story about how dell is laying off worker yet at the same time preserving millions in perks for its senior staff.

http://www.keyetv.com/content/news/topnews/story.aspx?content_id=b5ac27a6-6d43-4d27-9324-2122b10ac3a9

they are giving back to stock holders, the execs at the top.

Apr 04, 08 - 12:52 am Comment from: Jubei

I bet they will re-hire that spaced out DELL Dude and do their own commercials. "Hi I'm a DELL and Hi I'm HELL for buying a DELL"

Apr 04, 08 - 01:28 am Comment from: freebeer

The best line I've read some writer wrote about Dell years ago was to this effect - 'Dell try to present itself as innovative but really is just a bottom feeder.' What do they really invent, besides armstronging city governments to pay for their plants and hiring low wage. They are the Walmart of PC makers. Students 10 years ago bought them because they're cheap, and you get what you pay for. There're 1000 companies in Asia that can take over Dell and make better PCs cheaper. The real sad truth is all this economic downturn and raiding of tax dollars for the execs/shareholders are predicted 3 years ago when Dell came knocking at your local community to build a plant. And moron local officials would eagerly kneel down to kiss their feet. Dell is nowhere close to Gates. Dell is irrelevant.

Apr 04, 08 - 02:06 am Comment from: c

Piss on Dell.

Pile of their 'going out of business sale' crap in one, huge unmarked grave.

That uppity little shit Michael Dell has it coming.

Apr 04, 08 - 02:27 am Comment from: mac user 47

I haven't had a very good experience with Dell, but it sucks that they are having problems. It's not kid games that so many are losing their jobs, and those jobs are most likely going to overseas assemblers.

Apr 04, 08 - 02:48 am Comment from: flappo

i hope they go bust and some chinese conglomerate buy whats left and turn dell into a dog food factory

fsck mike dell - asshole of the century

Apr 04, 08 - 02:50 am Comment from: HolyMackerel

Dell used to have a good reputation and low prices. The reputation took a hit when they used less reliable parts. Also, their 'cheap' end of the line is hyped as much as their high end, causing consumers to get burned when they can't run games or Vista properly or at all. They should have made it clear you're buying crap or limited goods.

But not only did Dell do something bad, but their competitors have been doing something good. HP has a good reputation and is also moving to 'Cheapside'. In 5 years HP's reputation will also be in tatters if this new low-end becomes limited and unreliable.

There is a market for cheap, risky goods for those who are price adverse and willing to take the risk. I am glad that Apple has not gone for this market (Mac IIvi, IIvx were exceptions), as even the Mac Mini is very reliable.

Apr 04, 08 - 03:48 am Comment from: NeilDeWheel

Atari

Have a look at BurnAgain for multi-session disks without multiple volumes

Apr 04, 08 - 03:52 am Comment from: almux

..."and give it back to the shareholders"...

Apr 04, 08 - 04:14 am Comment from: Cleetus

@ Randian,

Be funny if you had any idea what you were talking about... How much tech experience are you drawing from? I bet you have a whopping 10, maybe 15, years...wow! Let's all bow down...cuz this guy knows that the Wintel folks play fair. Blow me dude! Take your arkane Windoze skills and get a phat job in the Ukraine (no offense to the lovely Ukrainians! I love the Ukraine! Just seemed slightly less old school than the U.S.S.R. (which, obviously, it is!) So, again, good luck with those skills ya douche!

Apr 04, 08 - 05:32 am Comment from: R

$200 million profit. Yeah, when I sank to $200 million profit, I really felt like I had hit the skids, too. Boy, oh, boy.

I like that Dell isn't exactly shining at the moment, but it would have been nice if he had done something similar to what Steve said-- that they would use their cash to weather the economic storm because everyone on the team was valuable. Makes me wonder exactly what these people did that so many of them can be let go.

Apr 04, 08 - 05:42 am Comment from: MacRaven

I have no sympathy for Michael Dell, and feel the same way MDN does. When the outside of the computer is clunk ugly, and the inside is 10 yrs old (XP) or broke on delivery (Vista) you can't expect expanding sales.

However, I do feel sorry for the laid off employees, and my sympathy goes out to them. That is a lot of people without a job.

Apr 04, 08 - 05:42 am Comment from: Walter Chillum

"MacDailyNews Take: …why don't you just shut it down and give the money back to the shareholders…"

Too late, who'd buy it?

Steve Ballmer, here's your chance to make another brilliant decision.

Apr 04, 08 - 05:50 am Comment from: Robert

The only way for Dell or others is to change to an operating system that actually rivals, not mimics, MacOS X. Linus's derivative UNIX has shown itself to miss the mark. Unless someone has the answer in their garage, only Steve Jobs can save Dell by licensing OS X.
What are the chances of that?

Apr 04, 08 - 05:59 am Comment from: Road Warrior (NLI)

I used a Dell once (someone asked me to have a look at it). Even with the rubber gloves, I got nauseous.

Gotta say this though, they are coming close to what Mickey said, "run the company into the ground and give the money back to the execs, uh shareholders."

Kharma Dude.

Apr 04, 08 - 06:11 am Comment from: Jay-Z

@ MDN:

"Who is sad about it?"

I do feel badly for the people who are losing their jobs because this nincompoop has nothing unique to offer. I'm sad they're the ones who are going to suffer while Dell falls from his golden parachute.

Apr 04, 08 - 06:44 am Comment from: Last time reading MDN

Talk about arrogance...

"MacDailyNews Take: Bad luck with that, Mikey. Hey, here's an idea: why don't you just shut it down and give the money back to the shareholders (while you still have money to give)?"

"MacDailyNews Take: Again with the "sad." Who the hell is sad? We're having a freakin' party here!..."

And some wonder why Mac users have a snobbish reputation.

MDN, you shall soil my Mac's screen no longer. I know, I know, don't let the door hit you on the way out, blah blah blah...

Apr 04, 08 - 07:12 am Comment from: Zune Tang®

Stay the course, Mr. Dell. History will prove you right.

The only advice you need is this: continue your rich partnership with Microsoft and Dell's future will be secure. What the MAC lemmings on this forum don't understand is really very simple: combine innovative, stylish and inexpensive hardware with Microsoft's revolutionary, beautiful and secure software and nothing will get in your way.

And reintroduce the Ditty music player.

Your potential. Our passion.™

Apr 04, 08 - 07:18 am Comment from: Big Al

@ Last time reading MDN

MDN is only quoting Dell slagging Apple when they say shut it down and give the money back.

History bites back.

Apr 04, 08 - 07:23 am Comment from: Round Rock Mac User

As much as I loath using Dells at work, the real tragedy with Dell's mismanagement is the loss of jobs. Our economy is already in enough trouble without adding over 8800 new unemployed people all at once. I for one would love it if Dell turned this around and started making better computers, competition is the main driving force for innovation. And I hate to see that many people loose their jobs because a few people at the top weren't earning their money.

Apr 04, 08 - 07:30 am Comment from: Ray

My favorite line "Dell plans to cut more jobs than the 8,800 it had targeted as it seeks to reduce expenses by at least $3 billion annually by 2011...". With business goals like that, who needs competition.

If anyone has seen the movie "Roger and me" and has seen the condition of GM lately. There is only one way this can go for Mr. Dell.

Just my $0.02

Apr 04, 08 - 08:11 am Comment from: bioness

Ah yes, dell, delaying their demise just like worldcom and enron

making gambles to get out

Apr 04, 08 - 08:24 am Comment from: Gamma

@Road Warrior (NLI)

"I used a Dell once (someone asked me to have a look at it). Even with the rubber gloves, I got nauseous."

You mean you became nauseated.....you didn't get nauseous. Americans almost always misuse this word. Items that are nauseous cause nausea or they nauseate. That pile of vomit on the floor over there is nauseous.

But I agree with your point PC's can definitely induce nausea!

Apr 04, 08 - 08:25 am Comment from: Party! Party! Party!

MacDailyNews Take: Again with the "sad." Who the hell is sad? We're having a freakin' party here!

Maybe the 8800+ Americans laid off are a bit on the sad side.

On the bright side, Hon Hai Precision Industries will join the party and bring colourful "Designed in California" and "Designed in Texas" balloons for everyone. They will be collector items, since starting 2009 all the balloons will say "Designed in Your State/Country for Your Company", for the sake of effectivity while still maintaining a sense of individuality and devotion.

Apr 04, 08 - 08:26 am Comment from: Troy

So 8800 people loose their jobs and you idiots think its great news? sometime I come here and see interesting news, other times it just MDN's mac fanatics crapping on other company's.

I swear if you guys could make love to your mac's you would......................or maybe you already do?????

Apr 04, 08 - 08:38 am Comment from: ron

Win - win for Apple. Whine - whine for Dell.

Apr 04, 08 - 09:05 am Comment from: bluestreak

@ Troy:
It's spelled 'lose', not 'loose'. Makes me wonder how you passed English 101.

@ Zune Thang

"Stay the course, Mr. Dell. History will prove you right."
Exactly! Just like the British Empire of the 18th century, Nazi Germany, New Kids on the Block, Crystal Pepsi....

"The only advice you need is this: continue your rich partnership with Microsoft and Dell's future will be secure...."
They reserved a space at the front of the unemployment line.


"What the MAC lemmings on this forum don't understand is really very simple: combine innovative, stylish and inexpensive hardware with Microsoft's revolutionary, beautiful and secure software and nothing will get in your way."

Me am Bizzaro Zune Tang! Me special! Me ride little yellow school bus by choice!

"And reintroduce the Ditty music player."
And make sure it's 100% compatible with PlayForSure™! Oh wait.....

Apr 04, 08 - 09:05 am Comment from: Grigori

For all those laid off, I hear CompUSA is hiring for all posi... oh, wait...

Apr 04, 08 - 09:05 am Comment from: Roberto

Dude, you're busted!

http://www.thesmokinggun.com/archive/delldude1.html

Apr 04, 08 - 09:47 am Comment from: critic

"MacDailyNews Take: What's sad about it?"

It is extremely sad that this is being accomplished by the loss of yet more American manufacturing jobs. Were Dell products cool? No. Did they serve their function? Based on how many machines they sell, obviously yes.

Do I feel bad that Michael Dell's net worth has dropped by a few billion? No.

The impact on the employees, however, is quite tragic, and the gloating MDN take is really in poor taste.

Apr 04, 08 - 09:47 am Comment from: Amazin1

It is always amazing to me that Mr. Dell, who was essentially a one trick pony, is still allowed by any responsible board of directors and the investment community, to be running this sinking ship. He was beyond arrogant and pompous and to see his creation struggle is only delightful on a very base level. I agree, the employees are the ones suffering. But as I asked one of them years ago, while trying to resolve an ordering issue dealing with their weird pricing structure, "Why do you want to work for a company that can't take care of its customers properly and you end up getting all the abuse?". I do feel for them but Mr. Dell is the one ultimately responsible and he should be held responsible for screwing up their lives. Instead, even if Dell does go bye, bye, he will continue to live the good life. Leaders in this country take no responsibility for their actions, unlike in Japan, where those who really screw up do what they consider the honorable thing for failing.

Apr 04, 08 - 09:55 am Comment from: Ampar

To Grigori:
Nice! grin

Apr 04, 08 - 10:00 am Comment from: DogGone

I agree with the posts above that it is sad that people will be losing their jobs because of Dell's issues.

Fact is Apple were in a similar situation a few years back and moved their manufacturing overseas in an effort to reduce costs and increase capacity without the need for investment.

However Apple have provided more jobs, although in different sectors, through their successful turnaround. That success was achieved through innovation.

So I do blame Dell for going through the standard approach of selling cheap to gain market share. Compaq failed like this and Dell has too. If HP attempt this approach they will fail again.

The moral of the story is be smart with how you develop your business and you will provide greater security for your employees.

Apr 04, 08 - 10:19 am Comment from: iMaki

What Dell needs is a good FARMER to clean up all the COW POOP in their operation! Hi Ho the Dairy-O, the FARMER and the DELLLLLLL!!! wink

Apr 04, 08 - 10:28 am Comment from: MidWest Mac

Here's a quick anecdote that I believe says a lot about the future of PC box assemblers and Apple.

My son is five years old and loves the old iMac running 10.3 in his room (even if it is pretty outdated, his pride it in makes it by leaps and bounds the best $25 I've ever spent -- got it used from a local school).

I got a RAM upgrade at an Apple Store last night, and while we waited 45 minutes to get it done he sampled all the gadgets in the store with eyes as wide as mine.

None of this is surprising, but I'm getting to the good part. We also frequent the Nebraska Furniture Mart in Omaha — which has a huge electronics section complete with its own Apple Store. Anyway, my kid always walks right by dozens of computers without even glancing at them to get to the Apple section.

He's never even asked about a Dell or an HP, or anything else.

To him, Macs and iPods might as well be the only electronics devices on the planet.

Apr 04, 08 - 10:35 am Comment from: Preston

Due to Dell's hideously poor service and quality, my business stopped buying Dells and now buys Macs and uses them for BOTH OS X and XP! Bad quality / service instances: On a $3000+ Dell, the hard drive crashed (they wouldn't replace unless I jumped through hoops, so I bought one myself), the keyboard died (I threw it out and bought another myself), the monitor died (they sent me used broken garbage twice; the third one, also used, was barely useable). Plus, the PC sounds like a diesel engine when it gets hot -- which is EVERY day. In other words, Dell will never ever get my personal or commercial business again -- and I was once a very loyal customer!

Apr 04, 08 - 10:47 am Comment from: alansky

Hey, what's the problem. Those 8800 Dell employees can all get jobs that suit them better... like selling shoes!

Apr 04, 08 - 11:27 am Comment from: Ampar

http://www.dell.com/content/topics/global.aspx/community/community?c=us&l=en&s=corp&redirect=1

But they do care about the little people, right? </sarcasm>

"Welcome to Dell Community"

"Dell provides a number of interactive ways for you to share and learn with others and with us. We encourage open conversations because we believe everyone has something to contribute. We're at our best when we're listening to you. This is your community."

Apr 04, 08 - 12:07 pm Comment from: YoYo

To compete with Apple is easy, Apple doesn't have buttons or extra connectors like the parallel port in their laptops, just start adding those and that's it. The one with most buttons will win. I know the Dell engineers can do it.

Buttons, buttons, buttons, everybody loves buttons, this is especially important now when Apple has started adding large multi-touch trackpads.

Apr 04, 08 - 12:12 pm Comment from: Ampar

"The one with most buttons will win."

Joanna: You know what, Stan, if you want me to wear 37 pieces of flair, like your pretty boy over there, Brian, why don't you just make the minimum 37 pieces of flair?
Stan, Chotchkie's Manager: Well, I thought I remembered you saying that you wanted to express yourself.
Joanna: Yeah. You know what, yeah, I do. I do want to express myself, okay. And I don't need 37 pieces of flair to do it.
[flips off Stan]

Reader feedback page 1 of 2 pages:  1 2 >

Always -- Free ground shipping with orders over $50 at the Apple Store.

Add Your Feedback:

Register or Login

Name:

Email: (optional)

Emoticons | Allowed HTML Tags

Remember my info   Notify me of follow-up comments?

Please enter the "MDN Magic Word" you see in the image below: