Dell yesterday announced that it would cut more than 8,800 jobs in the next four years in order to curtail some $3 billion of costs spent on its employees. Michael Dell, founder of the company told that the saving measure would include outsourcing some of its manufacturing operations and reform in logistics network. The company is trying hard to supplement its profit margins after its rival Hewlett-Packard had surpassed its sales during 2006.

Dell is under pressure to compete with Hewlett-Packard as its rival is capable of taking more risks and promote more products due to the profits earned by the company in the printers business. HP designs more innovative products by taking support of the profits earned by it in the printer business. Another reason for declining of Dell’s business is the falling price rates. In the current market scenario, a Dell laptop comes with a price tag of as low as $500. So, only the highest seller of the products can compete in the ever-changing market. Dell has already made some 5,500 job cuts and it is not clear how much job cuts from US would take place. Dell has global manufacturing facilities and so the cost-cutting measures would affect people from various parts of the globe.

Related Dell Products:

• Dell Latitude D600
• Dell Inspiron 2650