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Dell says job cutting is over but developing global recession causes uncertainty

Antony Savvas

Dell says its done with its global job cutting programme after previously making restructuring announcements that equate to job losses of around 9,000.

Dell CEO Michael Dell told journalists in China last week that the job cutting programme was over. The company was, however, unsure whether the global PC market would improve, admitted Dell's CEO.

Whilst Dell still wants to grab back the number one slot for PCs shipped to customers - it lost that position to Hewlett-Packard over the last year - it knows there is no point in ramping up its operations when a recession is going on.

Dell announced a 10% cut in global jobs last year, and announced further job cuts at its Ireland sites earlier this year.

A profits warning in September saw Dell's share slump to a ten-year low. The firm said there was a continuing decrease in end-user PC demand, and that was before the world's banking system went into meltdown.

Dell said at the time, "When Dell announced second quarter financial results on 28 August, it reported continued conservatism in IT spending in the US, which had extended into Western Europe and several countries in Asia. The company is seeing further softening in global end-user demand in the current quarter."

HP recently posted better financial results than Dell, but has announced around 26,000 redundancies as part of its attempts to cut costs and integrate the £7.2bn acquisition of EDS.


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