Dell to cut 10 percent of its workforce

In mixed news for the first quarter, Dell announced on Thursday that its profits had taken a slight hit even though revenues were up, especially in its server business.

As a result of the decreasing profits, the company said it was cutting 10 percent of its workforce of 88,000. However, it gave few details of the areas from which it intended losing people, saying the reductions will vary across regions, segments and job functions.

Net profits for the quarter were $759m (£383m), down from the $762m (£385m) it reported in the same quarter a year ago. But despite the fall, gross margin was up from $2.4bn (£1.2bn) to $2.8bn (£1.4bn). Dell attributed this to higher average selling prices and a better mix of products and services. Revenue for the first quarter of Dell's fiscal year was $14.6bn (£7.37bn).

After falling into second place in PC sales behind HP, Dell has been attempting to turn itself around. Over the past few months, the company has embarked on a roadshow, visiting journalists and analysts around the world in an effort to convince them it has the tools required to grow in the enterprise market.