Dell Technologies Inc (DELL.N), which is struggling with falling demand and preparing for economic uncertainty, announced on Monday that it will eliminate approximately 6,650 jobs, which accounts for approximately 5% of its global workforce.
The company joins a slew of other U.S. companies, ranging from Goldman Sachs (GS.N) to Alphabet Inc. (GOOGL.O), that have recently announced thousands of job cuts to help ride out a demand downturn as a consumer and corporate spending shrinks due to high inflation and rising interest rates.
In a memo that was sent out to employees, the co-Chief Operating Officer, Jeff Clarke, stated that “what we know is market conditions continue to erode with an uncertain future.”
Clarke stated in the memo, which the company made public, that the actions that Dell had taken up to this point to navigate a challenging economic environment, such as pausing external hiring, limiting travel, and reducing spending on outside services, were “no longer enough.” These actions included pausing external hiring.
According to a report that was released on Thursday, the number of people who lost their jobs in the United States reached its highest level in more than two years during the month of January.
This was caused by the fact that technology companies reduced employment at the second-highest rate on record in preparation for the possibility of a recession.
As of the 28th of January 2022, Dell had approximately 133,000 employees, of which approximately one-third were located in the United States.
The information was initially shared with the public by Bloomberg News earlier on Monday.
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