Dell Technologies Inc. has said it will lay off 6,650 employees, or about 5% of its global workforce, due to the decline in the personal computer market and a potential recession.
Dell has yet to disclose the departments most affected by the latest round of layoffs.
Co-COO Jeff Clarke stated in an internal memo that the company’s previous cost-cutting measures, such as a hiring freeze and travel curb, are no longer sufficient.
Dell stated that customers were reducing their information technology purchases in the quarter that ended on October 28 and reported revenue projections for the current quarter that fell short of analyst estimates.
About 55% of the company’s revenue comes from PCs.
According to preliminary data from industry and researcher IDC, Dell saw the biggest loss among significant firms, with a 35% decline compared to the same period in 2021.
When the company reports its fiscal fourth-quarter results on March 2, more information on the financial impact of the job cuts is expected.
To prepare for the uncertainties caused by the pandemic in 2020, Dell let go of an undisclosed number of employees.