Struggling computer maker Dell Inc. DELL, +1.61% will close its desktop manufacturing plant in Austin, Texas, and consider selling its Dell Financial Services unit, valued at about $1 billion, all in an effort to save $3 billion a year.

Dell reaffirmed its plans to reduce its global work force by at least 8,800 and said it had cut 3,200 jobs in the last nine months of its fiscal 2008, excluding acquisitions.

The Austin-American Statesman reported earlier Monday that Dell will close its Topfer Manufacturing Center in North Austin by Jan. 1, cutting 800 to 900 jobs. Dell has about 17,500 employees in the Austin area, the paper said, and about 85,000 workers worldwide.

In after-hours trading, Dell shares recently traded at $20.11, up nearly 1% from its regular session close of $19.92. The stock, down more than a third from its October high, hit a six-year low of $18.87 in January.

The company's announcement Monday comes two days before its analyst meeting, which starts Wednesday.

Dell expects to save $3 billion a year in the next three years by cutting costs in all areas, including design, manufacturing and logistics, materials and operating expenses. Savings will begin in the second half of this fiscal year.

Dell plans a strategic review of its consumer and small/medium business revolving credit financing receivables and operations in the U.S. and may also include commercial leasing. The company expects to finish the review in the third quarter.

"We plan to look at alternatives that will strengthen the product offerings, enhance customer experience and improve DFS' overall financial services capabilities in the most efficient way," Chief Financial Officer Don Carty said.

In December, CIT Group Inc. CIT, -3.03% , a commercial-finance company, and Dell announced that the computer maker would purchase CIT's 30% interest in their U.S.-based Dell Financial Services joint venture Dec. 31 for $306 million. DFS was formed in 1997 by CIT and Dell to serve as a full-service financial-services provider that offers a broad range of customer financing solutions for Dell customers throughout the U.S.

Dell has been trying to turn itself around after losing market share to rival Hewlett-Packard Co. HPQ, +0.31% in the past few years and seeing its revenue and profit growth slow.

Under Chief Executive Michael Dell, who returned to the post in early 2007, the company has expanded its offerings through several acquisitions and invested in higher-end design for its consumer PCs. The company also began selling computers in retail stores, a costly new initiative that is a departure from its past strategy of selling directly online and over the phone.

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