dell reuters 1675672313576

Dell Technologies will cut about ,650 jobs, or about 5 percent of its global workforce, due to falling demand for personal computers, Bloomberg reported on Monday.

The company’s co-chief operating officer, Jeff Clarke, wrote in a memo to employees that the company was experiencing market conditions where “future uncertainty continues to erode,” the report said.

In the memo, Clark said previous cost-cutting measures, including a hiring halt and travel restrictions, were no longer enough.

A company spokesperson told Bloomberg that the departmental reorganization and layoffs are an opportunity to improve efficiency.

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

Companies including Microsoft , and Goldman Sachs Group Inc. have recently cut thousands of jobs to help weather the slump in demand as high inflation and rising interest rates curtail consumer and business spending.

Alphabet, Google’s parent company, also cut 12,000 jobs last month. The layoffs affected teams across the company, including recruiting and some corporate functions, as well as some engineering and product teams.

Days earlier, Microsoft said it would cut 10,000 jobs and take a $1.2 billion charge from earnings 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 lay 6% of its workforce and bear related costs of up to nearly $50 million (approximately Rs. 4.08 billion).

A report on Thursday showed U.S. layoffs hit the highest level in more than two years in January, as technology companies shed jobs at the second-highest pace on record in response to a looming recession.

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