Dell to save $3 billion in costs, shut Austin plant

SAN FRANCISCO, March 31 (Reuters) - Dell Inc (DELL.O) said on Monday it plans to save $3 billion in annualized expenses over the next three years by closing its Austin, Texas desktop computer manufacturing plant and cutting thousands of jobs.

Dell, the world's second-largest PC maker after Hewlett-Packard Co (HPQ.N), also said it would reduce costs in design, manufacturing and logistics, materials and operating expenses.

The Round Rock, Texas-based company also reiterated a goal from last May to cut at least 8,800 jobs, or about 10 percent of the work force. It will launch a "strategic assessment" of ownership alternatives for its Dell Financial Services financing activities.

The review should be completed by this fiscal year's third quarter, Dell said. (Reporting by Philipp Gollner, editing by Leslie Gevirtz)