After Four Years of PC Production, Dell Closes NC Facility

While companies like Apple seem to be on the rise in this turbulent economic climate, Dell is looking at ways to cut costs by closing facilities and laying off employees. With profits on the decline, Dell is looking for ways to trim $4 billion in costs by the end of fiscal year 2011.

The latest example of this is Dell’s decision to close a desktop manufacturing facility in Winston-Salem, NC.

Just over three years ago, Dell lavished nothing but praise on its newest 750,000 square-foot manufacturing center and bragged about how it had employed over 1,000 people. “There’s nothing more important than exceeding our customers’ expectations every time they interact with Dell. Our growth and investment in North Carolina, combined with the more than 2,000 sales and support people we’ve hired in the U.S. over the past two years, signifies our commitment to giving customers the highest quality products and services for the best value in the industry,” said Dell CEO Michael Dell in May 2006.

North Carolina’s Governor at the time, Mike Easley, also praised Dell’s contribution to the state. “The employment and production milestones Dell has achieved in these first eight months prove that the investments North Carolina made to bring this facility to our state are paying off.”

Today, however, there isn’t as much back slapping going around. “This is a difficult decision, especially for our North Carolina colleagues, but a necessary one for Dell customers and our company,” said Dell’s Frank Miller. “The efforts of our team members there have been significant and we’re committed to helping them through their transition. Of course, we’ll continue to honor all agreements with North Carolina, Forsyth County and Winston-Salem.”

As a result of the closure, 600 employees will be let go next month and an additional 305 will be released by the time the plant is fully close in January 2010. Dell also notes that it will “continue to fully comply with the terms of incentive agreements with the citizens of North Carolina,” likely due to the tax incentives the company received by locating in North Carolina.

Although it is closing the Winston-Salem facility, Dell still maintains U.S.-based manufacturing and fulfillment centers in Miami, FL., Nashville, TN, and Austin, TX.