Tuesday, November 01, 2005

Dell Warns of Layoffs, Motherboard Replacements

John G. Spooner writes in eWeek:

Dell Inc., which on Monday night issued a third quarter earnings warning, has enacted what it characterizes as a small number of layoffs as a part of a restructuring it says will cut costs and increase efficiencies.

The Round Rock, Texas PC maker, will also replace numerous motherboards in Optiplex GX270 and GX280 business desktop PCs, due to faulty capacitors.

The layoffs and the motherboard replacement program, which Dell says it's handling by working with individual customers, are both included in a $450 million charge the company said it would take against its fiscal third quarter earnings, which will be announced on Nov. 10.

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