Dell to close North Carolina plant

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From the BNO Newsroom.

WINSTON-SALEM, N.C. (BNO NEWS) Dell has decided to close one of its U.S. plants, located in North Carolina's Forsyth County, by January of next year, a company spokesman told BNO News on Wednesday.

The manufacturing plant, located in the city of Winston-Salem, currently has a total of 905 employees. All employees at the plant will be affected by the decision, with six hundred of them being laid off during the month of November, said Venancio Figueroa III, a spokesman for Dell. The remaining employees will be laid off when the plant closes its doors in January.

The affected employees will receive competitive severance packages, including severance pay, incentive payments, benefits continuation and outplacement services, the company said.

"This is a difficult decision, especially for our North Carolina colleagues, but a necessary one for Dell customers and our company," said Frank Miller, Vice President of its Public Business Unit Supply Chain. "The efforts of our team members there have been significant and we're committed to helping them through their transition. Of course, we'll continue to honor all agreements with North Carolina, Forsyth County and Winston-Salem," he added.

The decision to close the plant was not only made to improve the company's efficiencies but also due to the current economic situation, Figueroa said. Dell's Winston-Salem plant manufactures desktop computers and, Figueroa explains, those sales have been going down as customers take a preference for notebooks. Additionally, customers are buying less products because of the recession.

Dell has a global manufacturing and fulfillment network and has a number of plants throughout the United States, Europe, the Middle East, Africa, and the Asia-Pacific. It also partners with third-party manufacturers to build certain products.

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