Dell to Lay Off About 6,650 Employees Amid Falling Demand for PCs: Report

Dell Technologies will eliminate about 6,650 jobs, or about five percent of its global workforce, hurt by falling demand for its personal computers, Bloomberg News reported on Monday.

The company is experiencing market conditions that “continue to erode with an uncertain future,” co-Chief Operating Officer Jeff Clarke wrote in a memo to employees, the report said.

The previous cost-cutting measures, including a pause on hiring and limits on travel, are no longer enough, Clarke said in the memo.

The department reorganizations and job cuts are an opportunity to drive efficiency, a company spokesperson told Bloomberg News.

Dell did not immediately respond to a Reuters email for comment.

Companies from Microsoft to Amazon.com and Goldman Sachs Group have cut thousands of jobs recently to help ride out a demand downturn as consumer and corporate spending shrinks due to high inflation and rising interest rates.

Google parent Alphabet also eliminated 12,000 jobs last month. The job losses affected teams across the company including recruiting and some corporate functions, as well as some engineering and products teams.

The announcement came days after Microsoft said it would eliminate 10,000 jobs and take a $1.2 billion charge to earnings, as its cloud-computing customers reassess their spending and the company braces for potential recession.

Audio streaming giant Spotify also announced redundancies in January, saying it was cutting six percent of its workforce and would take a related charge of up to nearly $50 million (roughly Rs. 408 crore).

Layoffs in the United States hit a more than two-year high in January as technology firms cut jobs at the second-highest pace on record to brace for a possible recession, a report showed on Thursday.

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