Dell Cuts Jobs as Profits Rise

Dell will lay off 8,800 workers—10% of the work force—over the next year, the Texas PC maker announced yesterday. Fighting back after a slide into the No. 2 spot behind Hewlett-Packard, Dell also reported better-than-expected results for the first quarter of 2007. But CNN reports that the Dell turnaround, steered by founder Michael Dell, who took over as CEO earlier this year, is still an uphill battle.

The company took a $46 million charge in an SEC investigation into questionable bookkeeping practices and there may be more charges to come as the investigation continues. Dell stock, which jumped 7% in after-hours trading yesterday, is down 34% over the last two years, while HP's shares doubled.