Dell planning more than $2B in cuts over 3 years - 13 WTHR Indianapolis

Dell planning more than $2B in cuts over 3 years

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NEW YORK -

Computer maker Dell is planning to trim its expenses by more than $2 billion during the next three years as it tries into move into the more lucrative fields of technology.

Dell outlined its cost-cutting plans a day after committing to the first quarterly dividend in its 28-year history. The quarterly dividend of 8 cents per share will cost Dell more than $560 million annually.

The bulk of the projected savings will come from Dell's sales group, where the company plans to wring out about $800 million in expenses. Another $600 million in cuts are envisioned in Dell's factories and other parts of its supply chain. The remainder of the cost-cutting will be concentrated in service delivery and general and administrative spending.

As part of the belt-tightening, Dell expects to make fewer products. Management didn't identify which of its current products might be jettisoned.

(Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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