Friday, May 30, 2008

Dell Sees Slowdown, Continues To Cut Costs

Round Rock-based Dell said Thursday as part of its quarterly earnings that the firm is seeing what it terms as "conservatism in IT spending in the U.S.," and will continue to reduce headcount at the firm. The firm said, that so far this year, it has cut 7,000 jobs, or 8 percent of its workforce, althought it also added about 2,700 employees through acquisitions for a net reduction of 5 percent. The company said it will continue to realign its business to imrpove competitiveness and reduce headcount, although the firm said it will invest in infrastructure and acquisitions. Dell said it was seeing the slowdown, particularly with its global and large customers, as well as with public, small, and medium business accounts, and that it expects the "conservatism" to continue through the summer.