Dell Reaches Employment Milestone


May 10, 2006

WINSTON-SALEM -- Dell Inc. passed an employment threshold at its production facility in the Triad this week.

The company brought on 150 more workers Monday, meaning that Dell now has more than 1,000 employees. Dell started computer production this past fall at its facility in Alliance Park in southeastern Winston-Salem about 5 miles from the High Point city limit.

State economic recruiters celebrated last year when they convinced Dell to set up its third major U.S. manufacturing plant in the Triad. The effort included a record state and local incentives package for Dell of nearly $280 million, which will be phased in during a 12- to 15-year period.

Dell now has 1,054 employees at its Triad facility, said company spokeswoman Donna Oldham in Winston-Salem. "Our next round of significant hires will be late summer or early fall when we begin to manufacture servers," Oldham said Tuesday.

Dell officials have said up to 1,700 workers eventually could be brought on at the facility.

Oldham said production and hiring at the Winston-Salem facility won't be affected by an earnings outlook the Texas-based company announced this week.

The world's largest computer maker warned it will miss its own targets for sales and profits during the first quarter. Industry analysts said Dell's move showed that it cannot avoid tough competition and price-cutting for personal computers, the Associated Press reports.

Dell reported late Monday that it expects a profit of about 33 cents per share in the fiscal quarter that ended Friday, down from its previous forecast of 36 cents to 38 cents per share. Analysts were expecting 38 cents per share, according to a survey by Thomson Financial.

Dell also said first-quarter sales would be about $14.2 billion. It had previously forecast revenue of $14.2 billion to $14.6 billion.