Dell Jumps on Job Cuts – Cutting About 10 Percent of Workforce
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Dell’s shares rose 5% Friday after the PC maker set plans to slash its workforce. The PC maker has been in fix-it mode since found Michael Dell returned to the CEO job earlier this year, sparking hope among investors that a comeback was in the making.
The Round Rock, Texas, company said first-quarter results were boosted by cheaper component parts and strong corporate sales. But the company, now under the leadership of founder Michael Dell, drew Wall Street’s applause by taking the ax to costs amid a continuing tough pricing environment. Most significantly, Dell will cut headcount by about 10% over the next 12 months. The reductions will vary across geographic regions, customer segments, and functions.
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