Dell to take $280 million fourth-quarter charge

When Dell reports its fiscal 2009 fourth-quarter earnings next month, there will be some hefty pre-tax charges, the PC maker said Wednesday.

The charges will cover relocating some of its manufacturing and distribution operations by fiscal year 2011 and accelerating the vesting of stock options that were previously awarded.

Dell, which will announce its fourth-quarter results on February 26, said it expects the pre-tax charge will be for $280 million, or 11 cents a share.

In its filing with the SEC, Dell said the cost-reduction measures were part of its plan announced in March to reduce its expenses by $3 billion. The company says there will be more cost-cutting measures during fiscal year 2010, which begins January 31.

CNET News reporter Dawn Kawamoto contributed to this story.

[dennisl59]

Expect the Layoff Announcement on February 1st.

Thank You.

[xcal78]

Dell has already done a lay-off. If they could have leaned out more they would have already. This loss is just because of trying to reduce costs. They take a hit upfront to save more on thr backend so expect NOTHING to change Feb 1st.

[SlimGem]

Hey Erica,

Ask Steve Jobs what he thinks Michael Dell should do.

[xcal78]

Didn't you hear? Steve Jobs is out on medical leave. I guess Michael Dell should join him?