Dell Reports Plummeting Sales
Due to the low consumer demand for computers, the fourth-quarter sales of technology giant Dell plummeted to a record-low. But despite this gloomy sales report, the company manages to keep its finances afloat as it successfully adopts cost-cutting measures that allow it to save millions of dollars.
Technology giant Dell recently released its fourth-quarter sales that plummeted to record-low that initial forecasts failed to predict how bad the condition has turned out.
The company blamed the weakened economy that forces people to buy less computers and electronic devices. Meanwhile, Dell is not only the company from technology industry to suffer from recession as Intel and Microsoft earlier reported that its sales dramatically declined.
Despite the sharp sales decline, Dell’s shares rose by 1.6 percent which is a big relief for shareholders and investors. According to experts, this pleasant outcome was a result from the company’s cost-cutting measures including massive workforce reduction that left thousands of employees jobless.
According to Dell, it will further boost its cost-reduction effort for three more years which has been estimated to save $3 billion to $4 billion. Meanwhile, the company declined to comment if it will implement another massive layoff.
When asked for comments, Dell chief financial officer said they are expecting the economic slowdown to be longer and deeper which makes cost-cutting strategies important for the company’s survival.
Financial experts lauded Dell for preparing its contingency plan which helped the company to survive during this global recession, saying that without such strategies, the technology giant may have experienced the same depressing outcome of some electronic companies which already filed bankruptcy protection.
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