Dell to cut 8,800 jobs
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Computer-maker attempts to improve margins despite plummeting PC prices
Troubled computer manufacturer Dell announced this week that it is to cut 8,800 jobs in the next four years in a bid to reduce operating costs by $3 billion.
In its attempts to recapture the lead in the global PC market from arch-nemesis Hewlett-Packard, Dell has pledged to diversify from its previously industry-beating direct sales business model, and now sells hardware through retailers including WalMart in the
But this week’s announcement demonstrates that diversification has been insufficient in revitalising the business. Dell appears to have been hardest hit by the rapid decline in PC prices over the past few years.
A company spokesperson insisted that the job cuts would be spread around its global operations, but US observers feared that Dell’s efficiency drive would add to their already-explosive levels of unemployment.
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