September 15, 2009
Dell, the one-time powerhouse in the personal computer sector, is closing a production plant, as the computer maker faces rising competition and a weaker sales environment.
The company announced Wednesday it would close a plant in Winston-Salem, North Carolina, eliminating more than 900 jobs. The company characterized the move as a restructuring operation.
"This is a difficult decision, especially for our North Carolina colleagues, but a necessary one for Dell customers and our company," said Frank Miller, vice president, Public Business Unit Supply Chain. "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."
Dell, which rode the technology explosion of the 1990s, has gone from being a consumer favorite to the object of frequent consumer complaints. ConsumerAffairs.com has logged over 1,300 complaints about Dell in the last 12 months.
Complaints have ranged from problems with the products to Dell's customer service. Samuel, of Pittsburgh, recently had a beef with Dell's financing operation.
"Back in April of this year I needed a new computer. I did not have the cash, so I decided to use my Dell account, which i have not used in two years and which has a zero balance," he told ConsumerAffairs.com. I received my new computer and started to make my monthly payment, all on time. Last month when my invoice arrives, it says that my interest rate is going up 5 percent. I call dell and speak to a manager... and she tells my there is nothing she can do and hoped that I will continue to use Dell."
In September, the New York State Supreme Court ruling that Dell Computer engaged in fraud against consumers in the state, prompting the once-dominant computer maker to settle charges, paying $4 million in restitution, penalties and costs.
New York Attorney General Andrew Cuomo brought the case against Dell, claiming it had engaged in fraud, false advertising, deceptive business practices, and abusive debt collection practices.
Most of the job terminations will occur next month. Dell said it expects the plant closing to be complete by January 2010. The company said it would simplify operations and improve efficiency by closing the North Carolina plant.
