Austin, TX—Dell Computer Corp., which implemented its first-ever widescale layoffs in February, announced a much larger personnel purge on May 7. Having let go of 1,700 employees in February, the manufacturer/marketer plans to cut 3,000-4,000 jobs–up to 10% of its staff–during the next six months.
“With the softer economy and lower demand for computing products, we want to maintain the growth we’ve had,” says Dell spokesperson Mike Maher. “If growth isn’t 30%, as it has been for so many years in a row, then we need to adjust the size of our workforce to the growth size.”
Although Dell statements indicate that the computer cataloger will reach its previously stated goals of $8 billion in sales and $0.17 per share in earnings when it reports its first-quarter results on May 17, the company is more cautious about the rest of the year. “The economy is softer, and demand is softer,” says Maher, adding that although Dell has no further layoff plans, “we reserve the right to continue to size the business according to its needs.”