The chief executive of PC giant Dell has revealed the company has virtually completed the 8,900 job cuts he announced in April as part of a $3bn (£1.8bn) cost-cutting drive.

Two months ago Michael Dell claimed 8,500 of the jobs had already been cut. He told journalists in a conference call today that the task of excising the remaining 400 was all but finished. He also indicated Dell planned to use cash flow to make acquisitions over the coming months.

The cost-cutting measures unveiled by Dell earlier this year also included plans to remodel the company's logistics network and outsource more manufacturing operations. HP has overtaken Dell as the world's leading PC manufacturer over the last couple of years.

HP has benefited from its profitable printers business which has allowed it to invest more in research and development. Dell's net profit declined 17 per cent during Q2 after the company dropped prices in an attempt to keep pace with HP in EMEA.