Dell Shuts Division & Sacks Staff Despite Sales Increase

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Dell, who has faced several hurdles this year including being fined for corrupt business practises, has shut down its budding mobile division – responsible for the Streak mini-tablet as well as some mobile phones, they have also shown the division’s top executive the door.

Overnight the company reported third-quarter profit that exceeded analysts’ predictions as declining component prices resulted in fatter margins for Dell.

Sales increased to $15.4 billion. 

Ron Garriques the head of Dell’s mobile division, who joined Dell in 2007 as part of Michael Dell’s effort to turn the company around, will depart in January, according to a filing with the US Securities and Exchange Commission.

He won’t go empty-handed, trousering severance pay of US$1.4 million along with a contract to be paid $6 million for consulting work.

The Streak will continue to be produced. Dell’s communications solutions group, which has been developing mobile phones and other devices like the Streak tablet, will be broken up and its products folded into other units, a spokesman said.

The division is said to have been losing money.

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