TAIPEI - US computer giant Dell has laid off 10 percent of its research and development staff in Taiwan as it aims to focus more resources in China, a report said Tuesday.

Dell's decision to cut personnel at its 600-member research and development centre was also prompted by a plan to let contractors carry out more of the R and D, the Commercial Times said, citing unnamed company sources.

The company last month reported that its fourth-quarter profits slipped five percent year on year.

The latest move came despite the company's previous announcement that it would continue expanding its R and D operation in Taiwan in order to branch into the "cloud computing" market, the report said.

Cloud computing lets firms essentially rent text, spreadsheet, calendar or other programs as needed and avoid the cost or buying, installing, updating and maintaining software on workplace machines.

Dell officials were not immediately available to comment on the report.