Dell announced on Monday (6) that it will cut about 6,650 workers, or 5% of its employees, at a time of falling sales in the personal computer market and fears of recession in the United States.
The company had already implemented cost-cutting measures, such as a hiring break and travel limits, in dealing with the post-pandemic collapse in PC sales, which account for more than half of the group’s revenue.
However, these changes “are no longer enough,” co-chief executive Jeff Clarke wrote in a memo to employees.
“What we do know is that market conditions continue to deteriorate into an uncertain future,” Clarke said. Dell expects to account for costs related to layoffs in the fiscal fourth quarter, which ended in January.
“It was only a matter of time before the wave of layoffs in the technology sector reached Dell, given the company’s sensitivity to consumer and business confidence,” said Susannah Streeter, an analyst at Hargreaves Lansdown.
Dell had about 133,000 employees as of January 28 last year, of which about a third were based in the United States.
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