Analysts expect change
Wall street analysts are expected Dell to face job cuts
now that its founder, Michael Dell is in charge. Dell has promised that he will
take a "fresh look" at the company which is facing stiff competition
from the likes of HP.
According to the NewsObserver, Wall Street is demanding that job cuts are among
the steps Dell is likely to take. The company has been thwarted by its rising
work force which has been hitting company profits badly.
Laura Conigliaro, a Goldman Sachs analyst is predicting
that Dell will have to take a lot more of its work off-shore if it is going to
reduce the huge losses it is taking hiring in the US.
She predicted that the company will reduce manufacturing rolls by 3,500 and
marketing and other personnel by about 2,500 to get back on track. Michael Dell
has admitted that its organization got a bit unwieldy, so we're really crisping
up who's responsible for what.
More here.
