By Senad Karaahmetovic
Dell Technologies (NYSE:DELL) confirmed today that it will cut about 5% of its workforce. The confirmation comes after Bloomberg reported the PC behemoth is slashing 6,650 jobs around the globe.
The company has decided to cut staff after witnessing a plunge in demand for personal computers. The PC business generated more than half of Dell’s total revenues last year.
Dell expects market conditions that “continue to erode with an uncertain future,” co-chief operating officer Jeff Clarke said in a memo he sent to staff. Clarke said that previous cost-cutting actions - paused hiring and limits on travel - are not enough to stop bleeding.
“We now have to make additional decisions to prepare for the road ahead,” Clarke wrote.
“We’ve navigated economic downturns before and we’ve emerged stronger. We will be ready when the market rebounds.”
Dell’s actions come as tech companies continue to cut jobs in an attempt to drive efficiency. Both IBM (NYSE:IBM) and Cisco (NASDAQ:CSCO) announced recently they will eliminate thousands of staff. Dell’s rival HP Inc (NYSE:HPQ) had said it would eliminate 6,000 workers.
Dell is now expected to have the lowest headcount in at least six years, once fresh cuts take effect.
The stock is down nearly 1% in premarket Monday.