Dell to close Winston-Salem PC plant, cut 905 jobs

Dell plans to close its computer manufacturing plant in Winston-Salem by January, and lay off 905 employees.

Dell opened the assembly plant in 2005 and was offered a massive incentives package valued at $305 million if it met hiring and investment goals. The project was seen as a major economic development victory by supporters and a huge waste of taxpayer money by critics.

About 600 workers at the plant will be let go next month, Dell announced this afternoon. The rest will be out of work by early next year.

The closure of the Forsyth County plant is part of a broader cost-cutting effort by Dell, which is trying to offset weaker PC sales worldwide during the recession.

"This is a difficult decision, especially for our North Carolina colleagues, but a necessary one for Dell customers and our company," vice president Frank Miller said in a prepared statement.