Business
10:18 am
Thu September 6, 2012

Dell Confirms Central Texas Job Cuts

One of the biggest employers in Central Texas is cutting jobs.

Dell let affected employees know about the reductions yesterday. The company says the cuts are in an effort to remain competitive and become more efficient.

“We recognize any reduction is significant for impacted team members and their teammates, and we are working to minimize consequences,” Dell Marketing Director David Frink says.

Dell isn’t revealing how many or which positions are being eliminated. Frink says some employees may be able to work elsewhere in the company.

It's a tough global economic environment for the Round Rock-based company, says Shannon Cross, a securities analyst who follows Dell.

"What hurt them most recently is just a dramatic slowdown in PC sales.  Right now there's a lot of uncertainty in the marketplace.  China slowed dramatically for both HP and Dell in the most recent quarter.  You've seen a lot of pricing pressure coming from some of the Asian competitors like Lenovo, Asus, and Acer. 

Cross says that Dell's Enterprise division is well positioned, and she thinks the company's fortunes may turn positive in October, with the release of Windows 8 tablets.