DELL Computers misses Q4 target and closes 1,700 Jobs
02/16/2001 7:34:00 AM MST Albuquerque, Nm
By Dustin D. Brand; Owner AMO
The XBOX GPU and MCPX are ready for fabs
February 15th, 2001 was a great day for the American stock markets. Dell computer however despite their profit warning said they will lay off 4% of their workforce full time jobs or 1,700 workers.
"We will continue to drive out redundant costs and further streamline our supply chain," Michael Dell, chairman and chief executive officer, said during the call-in with financial analysts. He didn't give any specific details on what future cost-cutting measures might be.
Dell did post a strong 4th quarter growth in Server sales which grew 63%.
"Industry demand was far softer than anyone expected when we entered the fourth quarter, but the inherent advantages of our business model helped us grow more than four times faster than the overall rate," Michael Dell, said in a company statement. In spite of the slump in PC demand, Dell said his company has managed to avoided piling up excess inventory and instead has reduced inventory to five days of supply. The five-day inventory level is the lowest in Dell's history, according to Schneider.
"We're bullish about our competitive position in the market and our future growth," Michael Dell told financial analysts. "In the fourth quarter, we built momentum while our competitors lost momentum." Both Dell and other executives claimed that the vendor's direct sales model has been key in helping it stay profitable in the challenging economic times.
Despite the hard times all the major PC makers have had due to slowing PC growth, PC growth in the coming years looks impressive, and we're still on track for Moores law. Intel says they can continue to double the speed on their Microprocessors every 18 months.
Intels' largest Microprocessor Fab is located but 7 minutes away from me in Rio Rancho, New Mexico.