Dell is embarking on a massive cost-cutting plan and it is cut more thsn 8800 jobs as a result.

The computer manufacturer first announced it was to reduce its workforce in May 2007.

However, chief exec Michael Dell has now admitted that the company will actually have to get rid of more staff than originally planned in order to reach its target of reducing expenses by at least $3 billion annually by 2011.

"We are not satisfied with the current state of affairs and are on a mission to fix it", said Dell. "Every area of the company is being pursued" for cost cuts.

Dell has not said exactly how many more jobs may be cut.

What is known is that the company is to shut down its desktop PC manufacturing plant in Austin, Texas, which will see 900 job losses.

Dell also told analysts that the company is not planning any major acquisitions at the moment but will focus on smaller purchases that complement existing businesses, according to Reuters.

"I wouldn't hold your breath for a big acquisition", said Dell.

"There are a number of network-effect acquisitions, where we can acquire a product line or a key methodology or a key group of skills that we can leverage across our entire network. Our acquisitions will be that kind of thing", he added.

Last year, Dell year made about nine acquisitions for a total of about $2.2 billion.