Local News

Dell to offshore jobs from closed N.C. plant

Posted October 16, 2009

— Production at the Winston-Salem plant that Dell Inc. is closing will be moved to Mexico and other countries, according to a federal document.

The High Point Enterprise reported Friday that Dell indicated in a Trade Adjustment Assistance Act petition that the work that has been done in Winston-Salem will be given to third-party providers in Mexico and other countries.

According to the newspaper, the petition states, "Our (Dell's) work volume is being transferred to a global manufacturing network.

"The work will be given to third-party providers who operate in Mexico and other countries around the globe."

Dell said last week it will close the plant, cutting almost 1,000 jobs in North Carolina. The petition allows workers at the Winston-Salem plant to collect additional unemployment benefits.

The plant primarily manufacturers desktop PCs, the market for which has been badly hurt during the global recession.

In worldwide PC sales statistics issued this week by analysis firms IDC and Gartner, Dell fell from second to third place in global market share. Acer is No. 2 behind No. 1 HP. Morrisville-based Lenovo is No. 4.

HP also surpassed Dell as the sales leader in the U.S.

About 600 Dell workers will be laid off in November, officials said. Affected employees will receive severance pay, incentive payments, benefits continuation and outplacement services, they said.

State lawmakers approved a $242 million package of tax breaks and other incentives in 2004 to lure the Texas-based computer maker to North Carolina, and Forsyth County and Winston-Salem kicked in another $37 million in incentives.

Many of the incentives were linked to employment and investment targets over time.

When Dell selected North Carolina for its new plant, the company promised to invest at least $100 million in its plant and create at least 1,500 jobs by 2020. Its 750,000-square-foot plant opened in late 2005 with great fanfare – company founder Michael Dell joined state and local officials at the dedication.

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Note: Some information from: High Point Enterprise

123 Comments

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  • Dolphan Oct 21, 9:31 a.m.

    "They moved, because of what's coming. In anticipation. Businesses do this all the time, and this will NOT be the last, nor is it the first. Would it have been better if they had lied and staggered a "layoff", until it made no sense to be open anymore?

    They are doing what they have to, to keep as many jobs comapany wide as they can,reduce costs etc.

    And also doing the best they can for the 900 employess who are losing heir jobs.

    NC is not the only place this happened in. And Dell is not the only CO. to do it, here and elswhere.

    Taxes, and costs. Bottom lines. Businesses have to make money to stay running."

    I hear what you are saying and to a point I agree. But when I read the other day that a top IBM Exec (Robert Moffat) was just arrested in an insider trading scheme, it's clear that at the top, it's about making money >.< They could give two poots if joe bloe who has been with the company faithfully for 30 yrs gets let go or not.

  • NE Raleigh Oct 16, 7:06 p.m.

    This should be illegal. Stop sending jobs out of the country for the savings of a few dollars. People should boycott dell. The Government should make the tarrifs so high from bringing their product from Mexico back to the US that it wouldn't be worth it to leave the US. There is no recovery without well paying jobs!

  • Spirit Warrior Woman - Rev. RB Oct 16, 6:51 p.m.

    whatu - "I don't blame Dell. They are only trying to survive."

    Baloney!

    There's a big difference between survival and greed, and I'd like anyone to highlight a US corporation that doesn't put greed first.

    God bless.

    RB

  • bnorris6 Oct 16, 5:06 p.m.

    Dell products are junk and since I have purchased 2 laptops, routers years ago, after problems and problems the next laptop was a Sony..Dell may have been good years ago, but the quality went down hill. I will never buy another Dell product again!!

  • 4Strikes Oct 16, 4:56 p.m.

    This can't be true, Obama promise in his campaign over and over that he was going to put a stop to it...

    ...oh well, he is Obviously too busy with other things.

  • whatusay Oct 16, 4:34 p.m.

    I don't blame Dell. They are only trying to survive. But, under Obama and the democrats there is no future for corporations in this country.

  • Boot-the-DC-Tyrant Oct 16, 4:24 p.m.

    how's the Hope and Change working for everyone? Sucks for me. Then again, I didn't vote for it but I got stuck with it.

  • Oct 16, 4:13 p.m.

    We stopped buying IBM and we will stop buying Dell in the IT shops. I am going to pull a list of the Execs at IBM and Dell that live in NC and publish them on the ANTI-AMERICAN Domestic Terrorist watch groups and thats what IBM and Dell execs are. Go Get Um Bubba, run them and their families out of the USA.

  • Da Toy Maker Oct 16, 4:01 p.m.

    "
    Every single item that a domestic US company brings in after being manufactured in another country should have HEAVY penalties placed upon it. Every single item.

    That'll get the jobs back here
    "

    It has been tried. It is the Tarrif (?) on imported goods but getting opposed by Big Co's and our trader partners. It is easier say than done.

    I sure as heck don't have any solution on the situation on how to stop companies from out sourcing as I'm partially responsible for part of by buying cheaper goods made elsewhere.

  • Spirit Warrior Woman - Rev. RB Oct 16, 3:52 p.m.

    ckblackm - "Perhaps it's our education system, as well?"

    You think people in Mexico are better educated than we are here in the US???

    This was a scam by Dell, and they should be heavily penalized.

    Every single item that a domestic US company brings in after being manufactured in another country should have HEAVY penalties placed upon it. Every single item.

    That'll get the jobs back here.

    God bless.

    RB

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