DELL PLANS to cut more jobs than the 8,800 it had targeted as it seeks to reduce expenses by at least $3 billion (€1.9 billion) annually by 2011, chief executive Michael Dell said yesterday.

Dell, the world's second-largest personal computer maker after Hewlett-Packard Co, will "go past" the job-cutting goal it first announced in May 2007, the chief executive said at the company's first analyst meeting since 2005.

"We are not satisfied with the current state of affairs and are on a mission to fix it," said Mr Dell (43). Every area of the company was being pursued for cost cuts, he added. Mr Dell, who founded the company in 1984 and is also its chairman, did not say how many more jobs may be cut.

Dell announced the $3 billion cost-reduction target earlier this week and costs have been the main focus at the analyst meeting after operating expenses at Dell swelled in recent years. Selling and administrative expenses surged 27 per cent in the firm's fiscal 2008, partly because of higher compensation and costs for a lengthy audit of the company's accounting.

Mr Dell said the company would end the current year with lower operating expenses than in the previous year. He said job cuts were continuing in the current quarter after 5,500 positions had been eliminated, for a net reduction so far of 3,200 jobs when counting positions added through acquisitions. He also told analysts that the company planned no major acquisitions, but would focus on smaller purchases which complement existing businesses. Dell last year made about nine acquisitions for a total of some $2 billion.

Chief financial officer Donald Carty said that the company expected to repurchase at least $1 billion of its stock in the current quarter. Dell bought back about $4 billion of its stock in its fiscal fourth quarter.