Dell cuts 8800 jobs

Posted on Friday, June 01 2007 @ 16:18 CEST by Thomas De Maesschalck

While announcing its preliminary earnings Dell announced it will lay off 10% of its workforce. Dell currently has 88,000 employees all over the world so this means about 8,800 jobs will be cut next year.

Net income for the quarter ended May 4 totaled $759 million, or 34 cents per share, a slight dip from the same quarter last year, which came in at $762 million and 33 cents per share. The numbers still surpassed Wall Street's expectations of 26 cents per share.

Gross margins grew to $2.8 billion, up from $2.4 billion a year ago, and operating income was down slightly to $947 million from $949 million, which Dell attributed to higher average selling prices and a better mix of products and services. Revenue for the first quarter of Dell's fiscal year was $14.6 billion.

Looks like Dell is gearing up and shaving costs in an attempt to beat HP and become world's biggest PC shipper again.

Source: CNET.

About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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