Dell Computer Corporation yesterday announced the first job cuts in its 16-year history, but said its plans to reduce the workforce by 4 per cent would not affect its Irish or other overseas operations.
The world's number two personal computer maker said it is eliminating about 1,700 full time positions, mostly in marketing and administration at its Austin, Texas, headquarters. Dell employs some 5,700 people in Limerick, Bray in Co Wicklow and Dublin, and 40,200 worldwide. It stated: "International locations are not affected by today's action".
Like other US computer makers, Dell anticipates an extended period of weak profits in the PC market. It has launched a price war to maintain sales, which last year rose just 9.2 per cent as growth in PC sales slumped.
Intel Corporation, which employs some 4,000 people in Ireland, yesterday announced the launch of a $300 million (€332 million) marketing campaign to sell a new high-end chip - the Pentium 4 - in an effort to revive flagging sales.
Dell yesterday reported a 16 per cent increase in fourth quarter 2000-2001 net earnings to $508 million (€562 million) compared to the same period of 1999-2000.
The figure excluded a onetime pre-tax charge of $105 million linked to job reductions and plant consolidation, the company said in a statement. Earnings per share came to 18 cents, just shy of a revised forecast by analysts of 19 cents. Net revenues rose 28 per cent to $8.7 billion.
-- (AFP)
