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Dell's net income dips 48%; may cut jobs
February 27, 2009 12:10 IST
IT giant Dell on Friday reported a 48 per cent decline in net income and said it could cut jobs in the Asia-Pacific region as its plans to save $4 billion to tide over the economic slowdown.
The US-based firm's net income dipped 48 per cent to $351 million for the quarter ended January 31, 2009, against $679 million in the same period last year.
Without specifying the quantum of job cuts and the geography, Dell President (Small and Medium Business) Steve Felice said in a teleconference, "The job cuts were minor in South Asia as this region has a professional talented pool and going ahead though I can't comment on the exact number, I anticipate it to be minimal."
Asked if the company was looking at cutting workforce at its Bangalore facility, Felice said, "I can't comment on the specifics. The Bangalore facility has the second largest population (headcount) globally."
The company's revenue stood at $13.42 billion in the quarter ended January 31, 2009 as against $15.98 billion during the same period a year ago, a decline of 16 per cent.
For the fiscal ended January, Dell's revenue stood at $61.10 billion, down from $61.13 billion a year ago.
With the IT industry facing turbulent times globally, Dell has also raised its fiscal 2011 cost-reduction goal to $4 billion from $3 billion.