Dell Computer will sack 1,700 workers as part of the PC maker's first-ever large-scale job reductions.
Analysts had been expecting Dell to announce layoffs when it reported fourth-quarter earnings after the market closed in the US on Thursday.
As reported earlier, Dell had cut its fourth-quarter temporary staff - amid a rapidly slowing PC market.
Most of the new layoffs will be in administrative, marketing and product-support areas and are part of an overall cost-cutting initiative, according to Dell. The layoffs will not affect international operations or the company's significant operation in Tennessee.
Dell employed 22,000 people in Texas and 40,200 worldwide at the end of its fourth quarter 2000. The cuts represent about 4 percent of Dell's work force.
Maher said changing market conditions necessitated the layoffs. "There are lower expectations for industry and company growth. If you understand our position, we are already a low-cost leader. That will extend our position in the marketplace."
Analysts had expected as many as 5,000 layoffs, but Maher said Dell has no other job cuts planned.
Dell isn't the first PC maker to announce layoffs recently. Hewlett-Packard said last month it was cutting 1,700 jobs, or 2 percent of its work force, while Gateway is axing around 3,000 positions, or 10 percent of its headcount.
This sounds just great....Dell sales volumes continue to increase and their customer and sales support continues to get worse. On top of that they now axe 1,700 workers. Is this going to make their customer and sales support better?
Eric Svetcov
Editor, IThell.com
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