Dell Plans 10 Percent Work Force Layoff

Jun 01, 09:01 AM

Current Headlines: Personal computer company Dell has announced plans for a 10 percent layoff of its work force over the next year.

The anticipated cuts, the company's first since 2001, would affect about 8,800 people, The Wall Street Journal reported Friday.

The announcement came from Michael Dell, founder and chief executive, who is trying to turn the company around. He said layoffs were difficult but, We know these actions are critical.

In preliminary first-quarter earnings, Dell posted flat net income and 2.8 percent growth from a year earlier.

Michael Dell didn't say how much the layoffs would save but one estimate set a figure of $600 million.