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Analysts predict job losses at Dell

Graeme Wearden ZDNet.co.uk

Published: 13 Feb 2001 17:30 GMT

According to industry experts Dell could lay off up to 4,000 staff Thursday, when it releases its financial results for the fourth quarter.

Analysts at Salomon Smith Barney claimed Tuesday that the computer manufacturer was poised to cut jobs for the first time in its history, in an attempt to make savings of $250m. The analyst firm also suggested that Dell will cut its target for sales growth in 2001 from 20 percent to 15 percent.

Last week Dell cut back on the number of temporary staff it employed, amid fears over a slowdown in the PC market. At the time, analysts predicted that large-scale layoffs were imminent.

Merrill Lynch analysts had more bad news, cutting Dell's profit estimates for 2002 from 90 cents per share to 85 cents. However, it did up the company's sales forecast for 2002 by 18 percent to $37.28bn.

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