Dell cuts over 6,500 jobs as tech layoffs continue: report

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

Previous cost-cutting measures, including a hiring pause and travel restrictions, are no longer enough, Clarke said in the memo.

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

Dell did not immediately respond to an email from Reuters seeking comment.

Companies from Microsoft to Amazon.com and the Goldman Sachs Group have recently cut thousands of jobs to weather a slump in demand as high inflation and rising interest rates constrain spending by consumers and businesses.

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

The announcement came days after Microsoft called It would cut 10,000 jobs and hurt earnings by $1.2 billion as its cloud computing customers reassess their spending and the company braces for a potential recession.

Audio-streaming giant Spotify also announced layoffs in January, saying it would cut six percent of its workforce and take on a related fee of up to nearly US$50 million (around Rs.4.08 billion).

Layoffs in the United States hit a more than two-year high in January as tech companies cut jobs at the second-fastest pace to prepare for a possible recession, a report showed on Thursday.

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