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No. 3 PC maker Dell plans to cut more than $2 billion in spending during the next three years as it seeks to focus on making data-center equipment, Bloomberg reports.
The company intends to trim costs by cutting down its supply chain and sales support staff. No doubt other types of job cuts will be included in the mix.
Dell’s PC sales are slowing, so the company needs to find other things it can focus on to survive. The company will work to push sales of networking equipment, software, accessories, and data storage, and it recently has bought other businesses to help in those areas.
To potentially help with lackluster investor demand, Dell also said it would offer a dividend with its stock yesterday. The company said its quarterly dividend will start at 8 cents a share, with a yield of about 2.7 percent. Dell’s stock price is up more than 4 percent today on the news.
Dell photo: Flickr/Dell