1 June 2007 — Dallas (TX): Dell is planning to cut 8,000 jobs, nearly ten percent of its workforce, over the coming 12 months as part of its restructuring efforts.
CEO Michael Dell said: "While reductions in head count are always difficult for a company, we know these actions are critical to our ability to deliver unprecedented value to our customers now and in the future."
The job losses follow news that Hewlett-Packard (HP) has overtaken Dell as the global leader in computer shipments.
Dell’s Q1 earnings fell compared to last year’s. Net earnings were $759 million, or EPS of $0.34, compared with $762 million, or EPS of $0.33 in 2006.
A federal investigation into the company’s accounting measures has delayed the filing of the company’s Q2, Q3 and Q4 earnings statements with the Securities and Exchange Commission. According to AP, the ongoing federal accounting probe has "found numerous errors, evidence of misconduct and financial control deficiencies".
Thomas Luce, chairman of the Dell’s internal audit committee, said: "Although this process has taken us longer than we would have liked it is important to commit the time and resources required to ensure a thorough and comprehensive review and resolution of all identified issues and the implementation of appropriate remedial measures."