Dell to cut 10% of work force, income falls

ROUND ROCK, Texas Dell Thursday announced that it will cut approximately 10% of its work force over the next year in order to reduce costs and simplify the structure of the company. According to the company, the layoffs will vary across geographic regions, customer segments, and functions, and will reflect business considerations as well as local legal requirements.

"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," Michael Dell, chairman and ceo said.

The news of the job cuts comes as Dell reports a drop in operating income from $949 million in the first quarter of fiscal 2007 to $947 million in the first quarter of fiscal 2008. The company reported first quarter revenue of $14.6 billion, compared with $14.2 billion last year, and earnings per share of 34 cents, compared with 33 cents last year.