Dell is getting more serious about trimming costs and is exploring plans to sell its PC manufacturing plants, according to a news report Friday. Once the leader in the low-inventory, built-to-order model for producing PCs, Dell is now relying more on contract PC makers. As part of that shift, Dell is trying to sell some or all of its manufacturing facilities, according to a report in The Wall Street Journal. The newspaper, citing anonymous sources, says Dell is looking to sell most or all of its factories within 18 months. The move comes just over a week after the Round Rock, Tex.-based giant disappointed Wall Street with lower-than-expected profits in the second quarter. The company has struggled to revamp its sales strategy to focus less online orders and more on retail sales in big outlets like Best Buy (BBY). The shift has been costly, however, in terms of marketing and distribution expenses. Now Dell is looking to contract manufacturers to cut costs and beef up its notebook computer segment. “We are actively reviewing all aspects of our logistics, supply chain, and manufacturing footprints. This review is focused on identifying efficiencies and cost reduction opportunities,” the company said in a regulatory filing Thursday. The company says it has already sold two facilities, one being a PC production plant in Austin, Tex. Dell was down 2% in premarket trading Friday. Dell Inc. is talking to contract computer manufacturers about selling its factories, the Wall Street Journal reported Friday. The paper cited unnamed people familiar with the matter. Selling the plants, then contracting with the buyer to supply computers, would remove a linchpin of Dell's strategy and bring it more into line with the business model of its competitors, which already outsource production. Dell (nasdaq: DELL - news - people ) started expanding outsourcing last year, the paper said. Dell has factories in Texas, Tennessee, North Carolina, Florida, Ireland, India, China, Brazil, Malaysia and Poland, according to the Journal. A call to Dell for comment was not immediately returned on Friday morning. The stock closed Thursday at $20.36, down 19 percent since last Thursday when Dell reported quarterly earnings that analysts described as “terrible” and “ugly.” Chief Executive Michael Dell said company may have been overzealous in cutting prices to challenge its larger competitor, Hewlett-Packard Co. (nyse: HPQ - news - people), in overseas markets. __
