Friday, January 30, 2009
Dell Takes Charges, Accelerates Vesting
Round Rock-based Dell said earlier this week that it will take a charge of $280M, as a result of the firm's restructuring efforts, and a new effort to accelerate vesting of stock options. According to Dell, it is recognizing $135M in expenses as part of its reduction in workforce, as well as migration of its production to contract manufacturing partners. The firm also said that $145M of the expense was related to accelerating vesting of previously awarded options. Dell said the moves are related to its plan to reduce its costs by $3 billion, which it announced in March of last year; the company further warned of "additional cost-reduction steps" to occur during fiscal 2010, which begins January 31st for the company.