Dell Adds 905 Employees to North Carolina Labor Pool
So much for Dell’s personal computer manufacturing operations in the United States. On Wednesday, the PC maker said it would close its plant in Winston-Salem, N.C., as part of a long-term restructuring that will see it cut costs by $4 billion by the end of fiscal 2011. Over 900 employees will lose their jobs as a result.
“This was a difficult but necessary decision to improve the company’s competitive position,” Dell (DELL) spokesman David Frink said. “It is not a commentary on workers in North Carolina or workers in the United States.”
Of course not. As Dell CFO Brian Gladden said during the company’s last earnings call, “Our cost reduction programs have never been more crucial than during this weaker demand environment.”
Still, it’s unfortunate to see the company forced to shift work once done in the states to lower-cost contract manufacturers abroad. This is, after all, Dell’s third big closure in recent memory. The company stopped desktop manufacturing in Lebanon, Tenn., earlier this year, and in 2008, it shuttered a desktop plant in Austin, Texas.