Dell to take $280 million fourth-quarter charge
The charge stems from layoffs, plant closings, and a new, accelerated stock vesting schedule.
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.