Feeds

Dell cheers Q1 with workforce decimation

2.0 - 8,000 = more money

Business security measures using SSL

Dell will decimate its workforce over the next year, eliminating more than 8,000 jobs. The company released word of this restructuring as it dished out first quarter financial results that beat market expectations.

Reinstalled CEO Michael Dell vowed to make cuts during a recent interview, saying Dell's headcount has grown by 50 per cent in recent years, while revenue has grown just 15 per cent. "That's not a good idea," Dell said. So now the company plans to cleave 10 per cent of its staff in a bid to reduce costs and return Dell to its glory days status.

"While reductions in headcount 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," CEO Dell said, in a statement today.

For the first quarter, Dell reported revenue of $14.6bn up from $14.2bn reported in the same period last year. Net income, however, dipped to $759m from $762m.

Despite the net income drop, the results appeared to please Wall Street, which expected lower revenue and net income totals. Shares of Dell were up 5 per cent in after-hours trading, at the time of this report, to $28.40.

(All of the financial results in this report are considered preliminary due to an ongoing investigations into Dell's accounting practices. Dell spent $46m during the quarter to deal with these investigations.)

Dell's first quarter was blessed by declining component costs and healthier high-end product sales, the company said. Notably, Dell's server revenue grew 19 per cent year-on-year to $1.6bn, while storage revenue rose 13 per cent to $500m. Dell also notched a 7 per cent rise in laptop sales to $4.0bn and a 6 per cent increase in software and peripherals sales to $2.3bn.

The desktop market remained very tough for Dell with revenue dropping 6 per cent to $4.9bn. Services revenue dropped as well to $1.3bn from $1.4bn in the same period last year.

Dell declined to provide a, er, numbers-based second quarter forecast. Instead, it warned investors to have patience as Dell 2.0 takes shape.

"While progress in the first quarter was encouraging, the company is focused on transformational efforts aimed at IT simplification that are designed to yield more robust and targeted customer solutions, superior customer experience, and expanded growth opportunities in the coming years," the company said. "These efforts may cause short-term fluctuations in operating performance, but the company believes they will produce a more optimal and sustainable balance of growth, profitability and liquidity in the long-term, driving sustainable returns for shareholders." ®

Reducing the cost and complexity of web vulnerability management

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Protecting users from Firesheep and other Sidejacking attacks with SSL
Discussing the vulnerabilities inherent in Wi-Fi networks, and how using TLS/SSL for your entire site will assure security.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.