Dell Announces More Cost-Cutting As Profits Fall

By Digital Trends Staff Published October 25, 2009

Dell announced yesterday that its profits had fallen by 48% over the same quarter last year, blaming lower demand and shrinking IT budgets.

Michael Dell, company founder and chief executive, said:

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"Within our business, we’re being very disciplined in managing costs, generating profitability and cash flow, and investing in ways that separate Dell from others today and when the economy inevitably improves."

As part of the cost management, the company will cut costs further, from $3 billion to $4 billion, hoping that and its restructuring will see it through the recession.

Enterprise revenue was down globally, and although consumer sales were up, buyers had gone for lower-priced computers, dropping revenue over the quarter by 7%.

Digital Trends Staff

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