Dell was considering selling its factories ?

September 6, 2008, 12:01 pm

   During the conference, devoted to discussion of the second fiscal quarter Dell, the new company`s Chief Financial Officer Brian Gladden (Brian Gladden) several times repeated that the company is still much to do to improve profitability and reduce overhead costs. Reducing staff by 8 thousand people over the past year confirms the seriousness Gladdena words, but reportedly Wall Street Journal, the company now intends to pursue even more drastic measures, selling their refineries contract electronics manufacturers. Currently, Dell has four factory in the United States and six outside the country.
Many competitors are companies, such as, for example, Hewlett-Packard, have delegated some assembly processes more efficient contract manufacturers to reduce production costs and increase operating margins. At the same time, notes the Wall Street Journal, may be that Dell desire to part with its own production may encounter a number of complexities. First, potential buyers from among contract manufacturers may frighten the high cost of labour, as with plants located in the U. S. . Secondly, the existence of some factories enshrined agreements with local authorities. For example, for the development of Dell in North Carolina in its time had been allocated several million dollars on condition that the factory will provide a certain number of jobs and participate in local investment programmes for the period up to 2015


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