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January 31, 2008 1:16 PM PST

Dell to cut almost 900 jobs

by Erica Ogg

Updated at 1:50 p.m. PST with comments from Dell.

More changes are afoot at Dell. The Texas PC maker plans to shut down a Canadian call center and lay off almost 900 workers.

The Edmonton, Alberta, center in Canada will close during the second quarter to consolidate customer service operations. Most of the nearly 900 employees will receive pink slips, while some will be reassigned elsewhere in the company. In addition, Dell has decided not to open a second Canadian customer service center planned for Ottawa. In all, the company has 25 call centers worldwide.

The cuts "are part of the series of changes being made across the company globally to enhance the efficiency of our business," said Dell spokesman David Frink.

It's part of a plan Dell announced in May in which the company would reduce its workforce by nearly 10 percent, or about 8,800 jobs.

The world's second-largest PC maker said just a day earlier it would close all 140 of its U.S. stores in favor of focusing on its new strategy of selling its products through retail outlets like Best Buy, Wal-Mart, and Staples.

Erica Ogg is a CNET News reporter who covers Apple, HP, Dell, and other PC makers, as well as the consumer electronics industry. She's also one of the hosts of CNET News' Daily Podcast. In her non-work life, she's a history geek, a loyal Dodgers fan, and a mac-and-cheese connoisseur. E-mail Erica.
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Aren't they already losing money because of poor customer service ?
by Rants&Raves January 31, 2008 2:10 PM PST
My experiences with Dell have been horrendous; from canceled orders showing up at the door (and hogging my credit card for weeks while the refused items are in transit back to their warehouses) to customer service reps explaining me that their convoluted non-customer-friendly ways were a product of policy and that no-one -- especially me, lowly customer -- is in a position to do anything about it, it seems to me that Dell's ability to erode loyalty and goodwill will not be improved by firing the few people left who are there to maintain good relations with the buyers.
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an example of Dell's customes service
by Hans131 February 2, 2008 8:22 AM PST
Some time ago I moved from the USA to Canada, taking my new Dell computer with me. When the machine stopped to function I called the Dell 800 number. When The service people in the US found out that I had moved to Canada they would not help and referred me to the Canadian 800 number.
The people at that number would not help because the Computer had been bought in the USA. That computer was donated for parts for a worthy cause, namely the junk pile.
There will never be another Dell in my life.
Dell service is already terrible
by txlakeside January 31, 2008 2:31 PM PST
It is already the worst service I have seen. They will now proably farm these jobs out overseas to folks that you have to constantly say "huh", "what" and "let me speak to someone who actually speaks english as a first language" too.

The biz models that made them great dooes not work on a scale that will compete with the rest of the world computer makers.

And I wonder how many tax breaks they have gotten around the world for creating jobs only to have massive layoffs 3-5 years later.

The majority employees in HQ (Austin) do not speak highly of upper management and are always worried about their jobs. Once bitten, twice shy!
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dell job cuts
by mtoc January 31, 2008 4:31 PM PST
buy a Dell and get to talk to India long distance, toll free! I avoid calling HP for the same reason. that is why I am switching to mac.
Imac is light and compact so that it can be easily taken to store for service.
suggest you buy a store service contract for your new PC, instead. or buy a Mac.
Reply to this comment
Indians excel at English
by pokiri January 31, 2008 10:23 PM PST
Thanks to Brits. But they have thick accents, i agree.
Dell to Canadian Call Center
by mpasquin January 31, 2008 5:14 PM PST
Great, now Dell can forward all customer service calls to India. Dell doesn't get it. They used to be so customer centric, now customers are just a nuisance.
Reply to this comment
Customers to Dell about Call Centers
by PCTechGuy February 2, 2008 5:06 PM PST
You've got that right. I hated calling Dell and having to put up with not understanding the people in India. I tell them I'm an experienced PC tech and don't need them to go through their stupid scripts, and they insist on doing it anyway, which obviously shows that they don't know a thing about what they're doing.

Dell is on the decline (how sad) by closing the Canadian Call Center, which I'm sure provides far, far better service than India ever has.
They put my order on hold for days without telling me
by cchenoweth6 January 31, 2008 5:22 PM PST
One part of my order timed out and cancelled..

So, I spent 3 hours trying to fix it with a variety of email and phone support.

Secondly, The DFS guys asked me way to many stupid questions.

Like what did I order, ssn, zip, address, etc. Nobody even called me to tell me that they needed to do this before my order would be released! I think there is some joke at Dell as to how much they can put a customer through before I say keep it!

Plus, I spend some quality time talking to India.

I hope the computer makes up for the bad support I got!

Ok, so here is my solution to my complaints:
Open some more midwest call centers. Stop transferring people around. I spent 30+ minutes per call when one rep that was knowledgable could have helped me in about 2 minutes.
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Dell Cutting Jobs
by Workman99 January 31, 2008 5:32 PM PST
I work in the computer industry. I too have to deal with tech support people who read off a screen and cannot understand that some people may have more skills than they do if they have any at all. I can understand Micheal Dell wanting to reclaim the top spot in the computer industry but putting people out of work and sending jobs overseas only to fatten his own pockets is uncalled for. I think he is forgetting one thing. His customers are his greatest asset without them he would not be where he is today.
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Consumer to Dell, WAKE UP!
by Atari05 January 31, 2008 11:48 PM PST
I agree with most of the posts here. The customer service from Dell is horrid. It wasn't until I was connected to Canada that my issue was finally resolved.

The issue is in the fact that offshored support doesn't understand the muck that is now American english. Full of slang etc that we use every day but totally will stop and Indian support rep in their tracks. Also, not saying its just India, it happens here but the rate of failed service when the support call drifts from their pre-made scripts is staggering. I don't know why but as soon as they have to think outside the box, a red light goes off and its deer in the head lights.

Yet our leaders don't understand why people don't go into engineering fields and such. Ohh geeez I don't know, maybe because that education isn't cheap, which means I will want some high dollar pay...which ....you know...I can't get because our "AMERICAN" companies off shored those jobs to save said dollars.....which ironically.....are slowly becoming just as good as rupees.
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Re: consumer to Dell, WAKE UP!
by chuck_whealton February 1, 2008 2:39 PM PST
I'll have to agree with you that I've seen a big difference between Canada and other countries. I've had pretty good support from Canada.

One (tech support country) I'm always experiencing problems with is actually a Latin American country that another major vendor uses.

I'm not even going to waste everybody's time describing it. It's horrible. If you think you don't have time for it with a desktop, you definitely don't have time for it with large, mission critical systems.

I've dealt with both near and offshore countries for support. Canada did/does a great job. I've also had great support from the few dealings I've had with people in China.

I believe Dell is making a big mistake in closing their Canadian facility.

Charles R. Whealton
Charles Whealton @ pleasedontspam.com
First and last 'Dell'
by Pks29733 February 1, 2008 4:39 AM PST
Read all the posts, and I agree. I had a simple 'modem' problem with my 'Dudd' desktop and it took me 5 days of 'tech support' from every other country than the USA to get an appointment for a in-house repair!! I think a law should be passed to make computer makers to post where thier 'tech support' is comming from ON THE BOXES!
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Had a Dell just bought an HP - (My Laptop is still a dell unfortunately...)
by zincmann February 1, 2008 5:51 AM PST
I recently got rid of my 6 yr old P4 Dell Dimension 8100 and it sounded like a meat grinder when it started up for years, was heavy and clunky. Tech support was never helpful, I had some small question I needed answered by HP and they were much more helpful. I am not impressed with the fit and finish of Today's dell PCs and the support guys here at my company tell me about how bad the Dell laptops are as I have a Work dell laptop also. Dell was ALSO more expensive for a similarly configured desktop than HP was, why would I PAY more and get less?
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Yeah right -outsourcing
by bear7699 February 1, 2008 7:24 AM PST
Can anyone say india. Does anyone ever get a technical representative from north america!
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Outsourcing - You Bet!
by Migraine February 1, 2008 8:14 AM PST
You mean Dell Knows what English is?

When my Dell X50V Pocket PC Broke I could never get any one that could speak English!

I never got it fixed, they would just give me the run a round, and say some one would get back to me but no one ever did.

Buy A Dell and you Will Be in Hell!
I used to work at Dell
by vvvvoooommm February 1, 2008 9:04 AM PST
it is just s sweat shop - they totally treat their employees poorly and once you get to a certain age, you are out. This keeps salaries and costs low for them - NICE! I recommend you buy an HP and support a progressive company
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Except that HP makes junk
by Ed from Texas February 1, 2008 9:14 AM PST
Tech support of the companies aside (I can't say that one really stands out as better than the other), in my experience, HP makes junk compared to Dell. Obviously, all comments posted to a place like this are anecdotal at best. However, after two HP Laptops and 1 HP desktop vs. 3 Dell desktops that have been in my family circle, I can say for certain that the HP's have been far less reliable.
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I agree!
by EAPENJJ February 1, 2008 10:31 AM PST
Dell make decent hardware but they treat their employees like dirt. It's always cost cutting and cutting corners for employees. Sales targets rising without a pay rise. The years I worked in Dell were hell.

I'm glad that the truth about Dell is slowly coming to light. When I was in Dell, senior management always boasted about how one day Dell would be number 1 in all markets worldwide and how Hp was on the decline - what a load of rubbish.

Hp's products and service are far better than Dell.

Go Hp!
Worked at Dell
by PCTechGuy February 2, 2008 5:36 PM PST
Better do your homework concerning quality and customer service before buying an HP or Compaq.
Government Involvement
by uglo February 1, 2008 11:10 AM PST
Dell, Gateway, Walmart and most likely Microsoft have been extensively involved with government money (you know - OUR money), that the old adage that a company that pays attention to its customers win big is passe. I remember Gateway here in Hampton, VA being given maximum government (our) benefits, free land, almost no taxes to build a huge distribution center here and what happened? Well, they are gone, the building is still here, taxpayers are out their money and all is WELL. If companies only operated with their own money and did not get involved with the leviathan (gov. again), then buying and selling would be a lot more lucrative.
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They will eventually offshore manufacturing..
by fred dunn February 1, 2008 11:58 AM PST
My money is that Dell will slowly start to close down their Round Rock manufacturing plants and offshore the consumer and laptops.
I think they will continue to manufacture the OptiPlex and server lines.

Dell's downfall was when they started chasing after the low cost market when the perception of Dell was high quality & high reliability. They can no longer diferentiate themselves from eMachine or Gateway since they use sub-par low cost components which for a while made it up the supply chain into the OptiPlex lines which is their bread and butter.

Dell should seperate the consumer and enterprise products by different companies under the same corporation. At least that way their consumer "kick-back" won't affect their enterprise marketing efforts.
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Offshore manufacturing
by PCTechGuy February 2, 2008 5:52 PM PST
Some of their laptops have been manufactured offshore for years!!!
Not too bad?
by Ksal005 February 1, 2008 1:39 PM PST
I've yet to have a really bad experience with my Dell or it's Indian customer support. I'm also an engineer and I understand the Indian accent due to going to college with many engineering Indian students.

As far as Dell, I've had a couple of problems with my Dell but I've had it for several years. Their customer support was ok. My problems were resolved. My PC rocks but it's also a custom Dell/Gaming PC with top of the line components. Maybe that's the difference?
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DELL will be DELL
by smcraj2007 February 1, 2008 2:26 PM PST
Even if many lose job? DELL WILL STILL BE THE BEST !!!
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The best at what ?
by Rants&Raves February 1, 2008 4:45 PM PST
Component quality ? Nope. Prices ? Nope. Service ? Certainly not. Can you substantiate your claim in any way ? I sure can't.
Reply to this comment
Just Buy A Mac ;)
by NRecob February 3, 2008 10:40 AM PST
No International calls to India and no Blue Screens of Death ;)

And the best part is you spare yourself from that *ugly* *outdated*
system hog masquerading as an OS (Vista)!
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