Computer giant Dell Inc. is aiming for more than $2 billion in cuts over the next three years so it can keep up in the highly competitive technology sector.
The Round Rock, Texas-based company said that about $800 million of the cost cuts will come from its sales group, while another $600 million will be trimmed from its supply chain, the company said during the second day of a conference in Austin, Texas, on Wednesday, according to The Associated Press.
With its weak PC sales as consumers are gradually shifting to tablets and smartphones, Dell has been purchasing software and services companies in an effort to move beyond making computers.
As the company tightens its belt, it said it will increase its investment in “growth initiatives,” a move that has apparently pleased its investors. Dell’s shares on Nasdaq went up by 0.5 percent to $12.34 per share on Thursday.
The announcement came a day after the company promised to pay the first quarterly dividend in its 28-year history. The quarterly dividend of 8 cents a share will cost the company more than $560 million.
On Thursday, communications company Nokia Corp. announced that it plans to cut up to 10,000 jobs by the end of 2013 as part of its cost trimming. However, it has not been as well received as Dell’s cuts. Nokia’s shares plummeted 16 percent on Thursday to $2.35.
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