Struggling with declining demand for its personal computers, Dell Technologies Inc will layoff about 6,650 jobs.
The company is set to eliminate about 5 per cent of its global workforce, reported Bloomberg on Monday.
The co-Chief Operating Officer Jeff Clarke reportedly wrote in the memo to the employees that the company is experiencing market conditions that "continue to erode with an uncertain future."
Clarke also added that the previous cost-cutting measures including a pause on hiring, limitations on travel are not enough.
The department reorganisations and job cuts are an oppurtunity to drive efficiency, reported Bloomberg News.
Microsoft, Amazon and Goldman Sachs Group has just recently cut many jobs to battle high inflation and rising interest rates.
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 was cited by Reuters.
According to reports, Industry analyst IDC showed that Dell and other hardware makers dealt with declining demand after the pandemic. Preliminary data show personal computer shipments dropped sharply in the fourth quarter of 2022. Dell had the largest decline, about 37 per cent, compared with the same period in 2021.
Majority of Dell revenue is generated from sale of its PCs.
Earlier, Cisco Systems Inc and International Business Machines Corp each had planned to layoff about 4,000 workers.
According to reports Dell has reported a 6 per cent decline in the period that ended in October 28. Clarke added that the company has navigated economic downturns and have emerged stronger. "We will be ready when the market rebounds," said Clarke.
