Dell to Cut 10 Percent of Its Global Workforce

Dell will eliminate 8,000+ jobs over the next 12 months

Last week, Dell announced that it would extend its reach into the retail sector by partnering with Wal-Mart. According to the deal, Dell will provide sub-$700 desktop computers to Wal-Mart and Sams Club locations in the United States, Puerto Rico and Canada.

The move to retail is expected to help Dell expand its business and better compete with #1 PC maker Hewlett-Packard.

"Our strategic intent is to simplify information technology for our customers by removing cost and complexity," said Chairman and CEO Michael Dell. "No other company is as well positioned to unlock value for our customers - empowering them to implement simpler and smarter technology solutions."

The company announced another move today that will help the company cut costs: a 10 percent reduction in its global workforce.

Dell currently has a global workforce of over 88,000 employees and expects to trim more than 8,000 employees over the next twelve months. According to the company, "The reductions will vary across geographic regions, customer segments, and functions, and will reflect business considerations as well as local legal requirements."

"While reductions in headcount are always difficult for a company, we know these actions are critical to our ability to deliver unprecedented value to our customers now and in the future," said Michael Dell.

Rumors of the impending cuts have been looming around the company for at least the past three weeks. "Everyone knew it was coming. I got out of there early, but we knew it had to happen for the company to survive," said one former Dell sales representative who left the company on May 7.

Interestingly enough, Dell witnessed operating income of $947 million USD for Q1 FY2008. This was up from $762 million USD in Q1 FY2007.
Reference:Brandon Hill,dailytech