Dell to cut costs by $2 billion-plus over three years Computer maker Dell Inc. is planning to trim its expenses by more than $2 billion during the next three years as it tries to move into more lucrative fields of technology. Dell outlined its cost-cutting plans Wednesday, the day after it committed to paying the first quarterly dividend in its 28-year history. The quarterly dividend of 8 cents a share will cost Dell more than $560 million annually. The bulk of the projected savings will come from Dell's sales group, where the company plans to wring out about $800 million in expenses. Some $600 million in cuts are envisioned in Dell's factories and other parts of its supply chain. The remainder of the cost cuts will be concentrated in service delivery ($400 million) and its general and administrative spending ($200 million). As part of the belt-tightening, Dell expects to make fewer products. It didn't identify which might be jettisoned. The Round Rock, Texas, company also didn't say whether it would lay off workers or eliminate jobs through attrition to save money. Wednesday's presentation for analysts and investors mentioned "consolidation" of sales support, a winnowing process that often leads to layoffs. Dell currently employs about 109,000 workers. One of Dell's major rivals, Hewlett-Packard Co., announced plans last month to eliminate 27,000 jobs to help reduce its annual expenses by $3 billion to $3.5 billion by October 2014. HP's job cuts will affect about 8% of its workforce. Like HP, Dell is trying diversify beyond the lower-margin business of making personal computers and plumb the more fertile territory of advising big companies and government agencies on how to manage their technology needs. As part of that process, HP and Dell hope to sell more software and computing equipment. Dell is the second-largest U.S. PC maker, after HP. PC sales have been weakening in the last two years as people increasingly navigate the Internet on smartphones and tablets such as Apple Inc.'s iPad. Both Dell and HP have been buying software and technology services companies to expand beyond PCs. As it saves money, Dell said, it will increase its investment in "growth initiatives." Investors applauded Dell's strategy. The company's shares rose 2.6% to $12.28.