March 11, 2009 / 9:23 PM / 11 years ago

Dell cutting jobs in North Carolina, Texas

SAN FRANCISCO, March 11 (Reuters) - Dell Inc DELL.O, the world’s No. 2 maker of personal computers, is cutting more jobs this week as it continues to retool operations.

Dell declined on Wednesday to disclose how many people it is laying off, saying only that they are taking place at its assembly facility in Winston-Salem, North Carolina, and in Central Texas.

The company, which cut 11,000 jobs last fiscal year, is trying to overhaul its cost structure in the face of a punishing recession.

“I can confirm a global workforce reduction this week as part of our ongoing effort to streamline our business,” said Dell spokesman David Frink.

Frink declined to say what other locations might also see job cuts. Dell’s headcount stood at 78,900 as of Jan. 30.

Dell’s Winston-Salem plant makes desktop computers and employs around 1,100 people. The facility is not being closed.

Central Texas is home to some Dell manufacturing operations as well as the company’s global headquarters.

The Austin American-Statesman newspaper reported that this week’s layoffs number in the hundreds.

Dell has said repeatedly it plans to wring expenses out of its business. It recently boosted its 2011 cost-reduction target to $4 billion from $3 billion.

In January, the company cut 1,900 jobs at its manufacturing plant in Limerick, Ireland.

Revenue in its most recent quarter fell 16 percent. The company plans to focus on profitability over growth.

Analysts say the company is overexposed to the PC market, which has seen a steep falloff in demand. PC sales make up around 60 percent of Dell’s revenue.

Shares of Round Rock, Texas-based Dell closed the regular Nasdaq session at $8.98, up 22 cents. (Reporting by Gabriel Madway; editing by Jeffrey Benkoe)

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