Dell Cuts Jobs as Profits Rise

PC maker will slash 10% of work force
By Peter Fearon,  Newser Staff
Posted Jun 1, 2007 5:08 AM CDT
Dell Cuts Jobs as Profits Rise
The Dell headquarters building is shown, Wednesday, May 30, 2007, in Round Rock, Texas. Dell Inc. is expected to release quarterly earnings on Thursday, May 31, 2007. (AP Photo/Matt Slocum)   (Associated Press)

Dell will lay off 8,800 workers—10% of the work force—over the next year, the Texas PC maker announced yesterday. Fighting back after a slide into the No. 2 spot behind Hewlett-Packard, Dell also reported better-than-expected results for the first quarter of 2007. But CNN reports that the Dell turnaround, steered by founder Michael Dell, who took over as CEO earlier this year, is still an uphill battle.

The company took a $46 million charge in an SEC investigation into questionable bookkeeping practices and there may be more charges to come as the investigation continues. Dell stock, which jumped 7% in after-hours trading yesterday, is down 34% over the last two years, while HP's shares doubled. (Read more Dell stories.)

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