news/GOOGL/2023.02.06/Dell to slash over 6,000 jobs amid 'uncertain market future'.txt

Feb 6 (Reuters) - Dell Technologies Inc is
cutting about 6,650 jobs, or 5% of its global workforce, as it
struggles with a slump in the personal computer market and
braces for a potential recession.The move on Monday aligns Dell with a raft of U.S. companies
from Goldman Sachs Group Inc to Alphabet Inc
that have laid off thousands this year to ride out a demand
downturn wrought by high inflation and rising interest rates.Dell had already rolled out cost-cutting moves such as a
hiring pause and limits on travel as it dealt with a
post-pandemic collapse in PC sales, which account more than half
of its revenue.However, those moves are "no longer enough", co-Chief
Operating Officer Jeff Clarke wrote in a memo to employees."What we know is market conditions continue to erode with an
uncertain future," Clarke said. Dell expects to book costs
related to the layoffs in its fiscal fourth quarter, which ends
in January.Rival HP Inc has also said it will cut up to 6,000
jobs. The market for PCs and tablets is set for another year of
decline in 2023 with a fall of 2.6%, according to research firm
IDC, after rapid growth during the pandemic on the back of
remote working."It was only a matter of time before the wave of tech
layoffs reached Dell's shores, given how sensitive the company
is to both consumer and corporate confidence," said Susannah
Streeter, markets analyst, Hargreaves Lansdown.Dell had about 133,000 employees as of Jan. 28, 2022, of
which, about one-third were based in the United States.The layoffs were first reported by Bloomberg News earlier on
Monday.Dell's shares were flat before the bell.(Reporting by Shivani Tanna and Eva Mathews in Bengaluru;
Editing by Savio D'Souza and Shounak Dasgupta)