Dell warns of UK cuts

Firm tells employees that margins must be protected ? at the cost of their jobs
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Dell has warned staff at its UK operations that as many as 20 per cent of jobs may have to be cut after the last round of redundancies and restructuring failed to stem falling margins.

In a letter leaked to Microscope, Dell told its employees that it was beginning a 90-day consultation period with staff, with compulsory job losses anticipated across the board as it places priority on maintaining margins.

"Dell is confronted with significant cost challenges in a depreciating global economy… Given the current economic conditions the company regretfully expects there is a strong likelihood that redundancies will be necessary in Bracknell, it is possible the redundancies will be across the board," Dell wrote in the letter.

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