Dell Inc. is breaking from past policy and going more into hock, with its revelation Thursday that it plans to raise financing in the capital markets.
“Historically, we have not taken on much leverage,” Dell CFO Donald Carty told analysts at a meeting at the company’s headquarters, according to a Reuters report. “We do expect to access capital markets to increase our leverage.”
Carty also said the company expects to repurchase at least $1 billion more of its stock in the current quarter, the wire service reported. Dell repurchased $4 billion worth in its fiscal fourth quarter ended Feb. 1.
Chief executive Michael Dell said the company plans to cut more jobs than the 8,800 it had targeted under its goal to cut expenses by at least $3 billion annually by 2011, Reuters wrote.
Carty said the company already has cut 5,500 jobs and will eliminate 1,000 more this quarter. However, Dell is increasing “frontline” personnel, such as sales and customer support. So, the net reduction will work out closer to 3,200, he said, according to the Associated Press.
“We are not satisfied with the current state of affairs and are on a mission to fix it,” Dell told the analyst gathering, according to Reuters. “Every area of the company is being pursued” for cost cuts.