Fighting to stay price-competitive in a soft computer market, Dell Computer on Thursday laid off 1700 full-time employees at the company's US headquarters.
Dell spokesman Mike Maher said a number of factors were to blame for the layoffs, which happened on the same day the build-to-order computer maker was to announce its fiscal 2000 earnings report.
Maher said that the layoffs were necessary for Dell to remain competitive. Dell, which originated the build-to-order computer business model, has a reputation for undercutting the competition at price.
"The reduction of operating expenses will further extend [our] cost leadership position," Maher said. "It's us staying ahead of our competition with a lean cost structure."
Maher also said that Dell's "continued reorganisation has made some positions redundant".
The layoffs were mainly in administrative, marketing, and product support positions, Maher said. Most received two months' severance pay and two months of extended benefits.
No further layoffs are anticipated from Dell, Maher said.