Dell Technologies reduced its workforce as part of a larger cost-cutting plan.
The corporation slashed 6,650 positions in response to concerns about a possible recession and dwindling demand for personal computers.
Dell employed roughly 120,000 employees as of February this year, up from around 126,000 the previous year.
As part of its downsizing strategies, the corporation has taken steps such as limiting external hiring and reorganising staff.
The business announced this in a filing on Monday.
Slow demand for personal computers.
The layoffs were caused by weak demand for its personal computers over nearly two years, which contributed to an 11% revenue decline in the fourth quarter earnings released last month.
Despite a 12% revenue decline in the fourth quarter, Dell expects net revenue growth in its client solutions group (CSG), which includes PCs, for the whole year.
The company remains optimistic that demand would revive in FY 2025 with a more competitive pricing environment, despite acknowledging short-term challenges.
Additionally, the company anticipates higher input costs and a “continued reduction of our other businesses’ net revenue” as a result of changes in its commercial relationship with VMware.
In 2018, Dell repurchased shares related to its investment in software company VMware, allowing it to return to the market.