Dell announces plan to save $3 billion

updated 5:39 p.m. ET March 31, 2008

NEW YORK - Dell says it will save as much as $3 billion over the next three years as it cuts costs and lays off more workers.

The world's No. 2 computer maker said Monday it will close its desktop manufacturing facility in Austin, Texas.

Round Rock, Texas-based Dell Inc. is also reaffirming its plan — announced last year — to cut at least 8,800 jobs, or about 10 percent of its work force. In the last nine months of fiscal 2008, the Round Rock, Texas-based company cut 3,200 jobs.

The company plans a broad range of cost cuts in design, manufacturing and logistics, materials and operating expenses to stay competitive.

Dell is also reviewing alternatives for its financial services business, especially its consumer and small to medium business revolving credit financing receivables.

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