More Dell cutbacks coming

Dell is going to make even more drastic expense reductions than it originally planned a year ago, says spokesman David Frink. Although the company had previously set a goal of cutting $3 billion in annual expenses by 2011, which has so far resulted in the loss of nearly 8,900 jobs, Frink says the company intends to slash expenses further in order to cope with the global credit disaster. No new firings are expected, but a hiring freeze is being put into effect, and some workers are being pressured into taking buyouts or one to five payless vacation days.

Further steps are expected to include a reduction in contracting offers, lower travel allowances, and unspecified forms of "reprioritizing" for projects and capital spending. The company has also registered with the Securities and Exchange Commission to periodically sell debt securities.

Although Dell remains one of the most powerful computer vendors in the world, it has in recent times suffered significant financial problems, blamed on factors such as lower spending in Asia and Europe. It also faces intense competition from chief rival HP, and the growing prevalence of Apple computers, which while still a minor factor have been eating into the sales of all PC builders.

By Electronista Staff

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