Dell planning factory closures to cut costs

Dell has not commented on reports that it is to close a number of manufacturing plants

Dell is planning to sell of a number of its international computer factories in a bid to overhaul what is rapidly proving to be an ineffective manufacturing strategy, according to reports.

The computer maker recently reported disappointing quarterly results that sent its shares tumbling by almost 20 per cent.

According to The Wall Street Journal, Dell has now begun approaching its contract computer manufacturers with offers to sell off its plants.

The report said that an "insider" had quoted a timeline of approximately 18 months for this to happen.

Dell's own site lists 60 manufacturing and technology facilities across 20 countries.

The vendor bases its PC business on the ability to ship custom machines from local facilities, so such a move would be a major one.

Dell has not commented on the report so far but, with its shares having fallen, the firm will have to respond in some way, and soon.

This year Dell has been whittling down its workforce across the globe, and recently appointed a new chief financial officer.

In May it announced that Brian Gladden had joined as senior vice president, and was to assume the role in June.

Gladden succeeded Don Carty, who stepped into the role in early 2007.