Dell Inc. said it is looking to excise more than $2 billion in costs over the next three years as it tries to move away from personal computers toward more profitable software and services.
The company is trying to recast itself as a broader technology company "unencumbered by a legacy of old stuff," said Chief Executive Michael Dell at an analyst meeting in Texas, where Dell is based.
Most of the cuts will come from Dell's supply chain and sales groups, executives said. The PC business will be scaled down with a roughly $1-billion reduction over the next few years.
Smartphones, tablets and other mobile devices have sucked sales from PCs, forcing companies such as Dell and competitors Hewlett-Packard and Lenovo to build out their other enterprise offerings, including data center products and networking businesses.
The industry, Dell said, is "constantly in transition."
"We have a modest software business, and that's an area where we can grow rapidly," he said, also mentioning that "the mix of the business has clearly shifted."