Is Dell running the risk of becoming the Yahoo! of the PC sector? Seems that way. The company has been spiraling, locked in fits and starts of recovery and morass for the better part of four years, and now there's word that already aggressive cuts and reorganization scenarios apparently weren't aggressive enough.
We now get details from Michael Dell himself that the 8,800 jobs Dell originally had in its crosshairs apparently didn't get the job done as Dell tries to reduce expenses by $3 billion annually.
Dell's comments come at the company's first analyst meeting in three years, saying that he is "not satisfied with the current state of affairs and are on a mission to fix it," adding that every area of the company is under review. We heard earlier this week that the company would be shuttering a whiz-bang PC manufacturing facility in Austin, Texas that would cost 900 jobs and a billion dollars in expenses.
The fact is, Dell's got big problems. Still. Expenses were severely out of whack last year, and judging by the moves and news this week, it appears they continue to be. And while so many key tech players, including Hewlett-Packard,Intel,Microsoft, Cisco and others have diversified revenue to a far more global profile--something that could insulate them against a domestic recession--Dell still gets 53 percent of sales from U.S. customers.