Dell to cut kiosk sales, jobs (quality cut years ago)

The Austin-American Statesman reports on its website that Dell computers is cutting 1,200 jobs in the United States and Canada. This is the most recent wave of layoffs since the company announced last May that it would cut 10% of its workforce (approx. 8,800 jobs). Dell said it will close its Alberta, Canada calling center by July and make reductions at other calling centers in Oklahoma City and Ottawa. The company also is closing 140 mall kiosks in the US as it makes more of its products available through mainstream retailers like Wal-Mart. In the past, their computers and other products had to be ordered and were only available through its website or kiosks. While initially receiving high marks and at one point becoming the top PC maker in volume worldwide, the company in recent years has been plagued with reliability issues for its PCs and has established a reputation of exceptionally poor customer service. Many college students can attest to these problems first hand, as many schools are "Dell campuses", or schools that have a relationship with the company so their students can get discounts on Dell computers. It is supposed to be an advantage to the student because they can save money and get free technical support during the four years of their undergraduate work. But, as hundreds of students find out each semester, the computers seem to have a higher tendency to break compared to other brands, and the level of service offered for free on campus is often just short of useless. It is not surprising that the company is struggling, although it sounds worse than I might have imagined considering the popularity of Dell products (which is in itself a mystery). Then again, this is the company that was forced to restate its earnings following an SEC investigation in August. It found senior management inflating sales figures to meet expectations. Personally, I'm glad I did my homework and bought an HP.