Dell Reportedly to Trim Expenses by 10%; Could Cut Jobs
Yi Ping Ho
02/09/01 - 08:31 AM EST
Dell Computer (DELL) plans to trim expenses by up to 10% in a series of moves that may also include job cuts, a published report said Friday.
According to the
Wall Street Journal, the Round Rock, Texas, computer bellwether has told its managers to expect cost reductions of 8% to 10%. Some employees also believe the company could be preparing to eliminate as many as 4,000 jobs, the paper said. It already has frozen most hiring, barred travel unrelated to sales calls and cut some marketing programs in response to an industry slowdown,
The cuts could start as early as next week. A spokesman for Dell said he was unaware of any sweeping reductions, the
Journal said.
Stuck in the recent PC slump, the company, the second-largest PC maker, has launched
a price war in an attempt to pressure weaker rivals and grab market share.
The company has also issued a plethora of earnings and sales projections,
the latest being a $32 billion sales projection for 2001. On Jan. 22, Dell
warned of disappointing fourth-quarter results because of sluggish demand for PCs and services.
The market is bracing for Dell's quarterly and year-end earnings report due Feb.15.
Shares of Dell recently lost 46 cents, or 1.78%, to $25.60 in pre-open
Island trading, down from its close of $26.06 in Thursday trading on the
New York Stock Exchange.
