Dell announces 10 per cent workforce cull

Vendor posts preliminary Q1 2008 results and claims job cuts are necessary to ensure it delivers value to customers

Dell is to axe 10 per cent of its workforce over the next 12-months as it looks to ‘restore competitiveness’ to its core business.

The firm, which recently announced it intends to work with the channel, posted its preliminary results for the first quarter 2008 which saw turnover of $14.6bn and a profit of $947m.

Dell also revealed it had incurred approximately $46m in costs associated with the ongoing investigations into certain accounting and financial reporting matters.

Michael Dell, chief executive of Dell, said: “Our strategic intent is to simplify information technology for our customers by removing cost and complexity. No other company is as well positioned to unlock value for our customers – empowering them to implement simpler and smarter technology solutions.”

“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,” Dell added.