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Dell to ditch ten per cent of staff

Computer giant Dell has announced plans to cut its workforce by about ten per cent over the next year.The move has been proposed following a cost-cutting review instigated by the PC maker, which has been struggling to maintain its market share due to growing competition from rival Hewlett Packard.However shares in US-based Dell rose in extended trading across the Atlantic as the company posted a jump in first quarter profits which exceeded analyst expectations.Dell, which recently started selling its PCs through Wal-Mart grocery stores in America in a bid to boost its ailing performance, revealed yesterday that operating income over the period rose to $947 million (£479 million), up from $762 million (£385 million) the previous year.Sales over the past three months were also up by about one per cent to $14.6 billion (£7.4 billion).Nonetheless Dell's founder and chief executive Michael Dell stressed that redundancies were necessary in order for the company to remain competitive.The cut of about ten per cent to Dell's global workforce over the next 12 months will mean that over 7,000 jobs will be lost at the computer firm, which employs more than 78,700 staff across the world.Dell confirmed that the scale of the job losses would vary across each geographical region and part of the company depending on business considerations and legal requirements in each area."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," said Mr Dell.In addition to trying to combat falling sales and rising costs, Dell is also the subject of a current probe by US regulators into supposed accounting irregularities at the company.Dell said that it had incurred costs of more than $46 million (£23 million) associated with the ongoing investigations over the first quarter.

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