Michael Dell said yesterday that he plans to cut more than the 8,800 previously announced jobs as the computer maker struggles to raise profits and sales.
Speaking near Dell's headquarters in Round Rock, Texas, the chief executive declined to give a specific number, however stated that the company plans to cut at least 1000 more jobs to cut down on costs.
We will go past the 8,800 target previously discussed, Dell said.
The analyst meeting was the first one the company has had in nearly 3 years. Executives explained to analysts the progress of its current turnaround plan, reiterating its goal to save $3 billion a year. More cost effective design, and improved supply chain efficiency could significantly add to the bottom line, analysts said.
Dell acknowledged that the company had been caught out by a bloated cost structure, a shift in customer preferences towards lower cost PCs and insufficient presence in the fastest growing segments of the PC market, such as services.
We were not participating in some of the fastest growing parts of the industry, Dell said.
Such missteps have eroded the sales and cost advantages that Dell has enjoyed over Hewlett-Packard and other PC rivals. The group has sought to put itself back on track by cutting costs and striking deals to sell Dell PCs in retail outlets around the world, including via Wal-Mart.
Last year the company cut 5,500 jobs as reorganization began .
Dell's shares slipped 1.4 per cent yesterday to $19.67, off more than 30 per cent from a recent high of $30.60 in October.