NEW YORK: Dell Computer Corp. on Tuesday declined to comment on growing
speculation that the No. 1 personal computer maker was planning a new round of
layoffs. "We don't comment on rumor or speculation on any topic, including
this one," said Dell spokesman T R Reid.
Robertson Stephens analyst Eric Rothdeutch said he expected Dell to cut more
jobs in addition to a workforce reduction announced in February, to preserve
profits amid falling computer prices. "We expect the company to announce
additional layoffs in the next few weeks, which should be 2-3 times larger than
the 1,700 full-time employees from the first round," he wrote in a note to
clients. "We look for the company to restructure its US operations and to
close down non-performing businesses."
"This is further evidence of Dell's maniacal focus on driving costs out
of its business and anticipation of a further squeeze on gross margins, in our
opinion," he said. Speculation that Austin, Texas-based Dell planned more
reductions ran on a Web site that tracks such issues, and the Austin
American-Statesman reported that analysts said additional cuts were likely.
The newspaper said, however, that local officials in Austin and Round Rock,
where the company is based, had not been informed of any additional job cuts.
The job cuts in February affected 1,700 regular full-time positions, or about 4
per cent of its workforce at that time.
Other computer makers have upped the number of job cuts they have planned.
Compaq Computer Corp.last month expanded job cuts to 10 per cent of its
workforce, or some 7,000 jobs, from its previous plan to eliminate 5,000
positions.
Hewlett-Packard Co. last month said it nearly tripled the number of jobs it
cut, eliminating 3,000 management positions or about 5 per cent of jobs,
tripling the roughly 1,700 marketing job cuts announced in January.
Dell chairman and chief executive Micheal Dell was quoted in Time magazine
last month as saying the company "screwed up" by overhiring, adding
that the February decision to cut jobs is a lesson that "when things heat
up quite a bit, we should take some pause." Time also said in the report
that as of last month Dell was hiring again.
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Dell declines to comment on more job cuts
NEW YORK: Dell Computer Corp. on Tuesday declined to comment on growing
speculation that the No. 1 personal computer maker was planning a new round of
layoffs. "We don't comment on rumor or speculation on any topic, including
this one," said Dell spokesman T R Reid.
Robertson Stephens analyst Eric Rothdeutch said he expected Dell to cut more
jobs in addition to a workforce reduction announced in February, to preserve
profits amid falling computer prices. "We expect the company to announce
additional layoffs in the next few weeks, which should be 2-3 times larger than
the 1,700 full-time employees from the first round," he wrote in a note to
clients. "We look for the company to restructure its US operations and to
close down non-performing businesses."
"This is further evidence of Dell's maniacal focus on driving costs out
of its business and anticipation of a further squeeze on gross margins, in our
opinion," he said. Speculation that Austin, Texas-based Dell planned more
reductions ran on a Web site that tracks such issues, and the Austin
American-Statesman reported that analysts said additional cuts were likely.
The newspaper said, however, that local officials in Austin and Round Rock,
where the company is based, had not been informed of any additional job cuts.
The job cuts in February affected 1,700 regular full-time positions, or about 4
per cent of its workforce at that time.
Other computer makers have upped the number of job cuts they have planned.
Compaq Computer Corp.last month expanded job cuts to 10 per cent of its
workforce, or some 7,000 jobs, from its previous plan to eliminate 5,000
positions.
Hewlett-Packard Co. last month said it nearly tripled the number of jobs it
cut, eliminating 3,000 management positions or about 5 per cent of jobs,
tripling the roughly 1,700 marketing job cuts announced in January.
Dell chairman and chief executive Micheal Dell was quoted in Time magazine
last month as saying the company "screwed up" by overhiring, adding
that the February decision to cut jobs is a lesson that "when things heat
up quite a bit, we should take some pause." Time also said in the report
that as of last month Dell was hiring again.
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