Dell mulls more jobs cuts as Q4 profits slide

Dell, the computer and IT giant witnessed a major downslide in its profits during the last quarter of 2008.

The PC manufacturer said reportedly generated revenue of $13.4 billion in the fourth quarter. This was around 16 percent lower than the $15.9 billion revenue reported last year for the same quarter.

Dell’s total profit for the year was $351 million, about 18 cents to a share. This is substantially lower to the last year’s earnings of $671 million and 31 cents to a share.

The drop in profit is nearly 48 percent. Most of the analysts had estimated the earnings to be close to 26 cents per share.

Dell declared last month that it would have to take a $280 million pre-tax charge i.e. about 11 cents to a share due to restructuring and cist cutting related measures in the quarter.

Many of the customers of Dell had started delaying or deferring on spending during summer which continued even during the second quarter. Brian Gladden, the chief financial officer for Dell said during a conference that they expected the weakness to continue for the ongoing quarter.

The focus of Gladden would continue to be on cost cutting for the company including luxuries such as corporate entertainment. Dell had cut its operating expenses by around 16 percent or nearly $363 million for the fourth quarter.

More Info Interested in Pharmacist Jobs UK ?
Building Jobs at reasonable prices