It looks as though Dell are paving the way for another disappointing set of quarterly results, with the company issuing a press release this morning that describes “further softening in global end-user demand”. When it announced its Q2 2008 financial performance back in August, Dell profits were lower than expected; they blamed this on “continued conservatism” in the US, Europe and parts of Asia. That only looks to have continued, and now Dell is considering business realignment and even staff cuts in order to remain competitive.
“The company expects to incur costs as it realigns its business to improve competitiveness, reduce headcount and invest in infrastructure and acquisitions, but is committed to working aggressively on cost initiatives that will benefit its P&L over time with improved growth, profitability and cash flow” Dell press release
Details of how Dell will “reduce headcount” are uncertain, but slimming down a workforce in order to save costs is certainly not a new tactic. They have not suggested any sort of revised performance figures.
Despite the slowdown, Dell are still confident that they will continue to outpace their rivals over the remainder of 2008. The company’s Q3 2008 results will be released on November 20th.