Dell is to reduce its workforce by more than 10 per cent over the next 12 months, losing a potential 8,000 permanent and contract jobs.
News of the layoffs follows Dell's first-quarter earnings report of $946m in income, up 14 percent from a year ago.
Despite the profits, chief executive Michael Dell maintained that the company still needs to trim costs and strip down its operations.
"Our strategic intent is to simplify information technology for our customers by removing cost and complexity," he said in a statement.
A company spokesperson said that Dell's employee head count stands at 88,100, around 82,000 of which are permanent positions.
Dell is in the middle of a restructuring in an attempt to fend off stiff competition from HP, which overtook Dell for the top spot in the consumer market early this year.
The effort has included bringing founder Michael Dell back as CEO, unveiling a line of Linux PCs and opening its first retail operation through US chain Wal-Mart.
Dell to slash 8,000 jobs
By
Shaun Nichols
on Jun 4, 2007 7:00AM
Got a news tip for our journalists? Share it with us anonymously here.
Partner Content
Tech Data: Driving partner success in a digital-first economy
_(11).jpg&h=142&w=230&c=1&s=1)
The Compliance Dilemma for Technology Partners: Risk, Revenue, and Reputation
Channel faces AI-fuelled risk as partners lag on data resilience, Dicker Data summit told
Tech Buying Budgets for SMBs on the Rise
Promoted Content
From Insight to Opportunity: How SMB Service Demand is Shaping the Next Growth Wave for Partners
.jpg&w=100&c=1&s=0)
_(8).jpg&w=100&c=1&s=0)
