Just a day after Dell laid off about 400 workers at its Winston-Salem computer factory, the company reported weaker quarterly sales and profit.
Dell is slashing jobs and cutting costs to offset slowing sales. Bigger rivals such as Hewlett-Packard and Acer are seeing sales increase.
Dell reported today that profit fell 54 percent to $337 million during the third quarter, which included the back-to-school shopping season. Sales dropped 15 percent to $12.9 billion.
The company's margin was hurt partly by $102 million used for "organizational effectiveness actions," including the October decision to close the Winston-Salem factory, chief financial officer Brian Gladden said on a conference call with Wall Street analysts.
On Wednesday, about 400 employees at the Winston-Salem plant worked their last shift, the Winston-Salem Journal reported. That plant, which open in 2005 after Dell received the promise of more than $280 million in state and local incentives, is scheduled to close in January. About 900 workers will lose their jobs once the plant closes.