Dell Sounds Knell For Hundreds Of Employees

A Dell spokesperson, David Frink, told The Austin American-Statesman that the cuts began Wednesday at Dell's factories in Central Texas and North Carolina.

"We've been streamlining the company where it makes sense for more than a year," Dell spokesman David Frink told the paper. "Any actions this week are part of that effort. The layoffs are not about individual performance but about properly sizing Dell's business for the economy and business environment."

Wednesday's news follows Dell's layoff of 1,900 workers in Limerick, Ireland, in January. The job cuts are not a surprise because the Round Rock, Texas-based PC maker in December 2008 announced a global reorganization to focus on large enterprise, public sector, and small and medium businesses.

In December, CEO Michael Dell explained that the reorganization was being made because the company had re-engineered its supply chain and broadened its product portfolio.

"Now, we're listening to customers and responding to their desire for faster innovation and globally standardized products and services," Dell said in a statement.

"Customer requirements are increasingly being defined by how they use technology rather than where they use it," said Dell in the statement. "That's why we won't let ourselves be limited by geographic boundaries in solving their needs."