With Monday’s move Dell also joins companies from Goldman Sachs Group to Alphabet that have laid off thousands of people this year to weather a drop in demand caused by high inflation and rising interest rates.

Dell has already taken cost-cutting measures, such as pausing hiring and limiting travel, as it grapples with an epidemic collapse in PC sales, which account for more than half of its revenue. However, these steps are “no longer enough,” wrote Jeff Clarke, Dell’s chief operating officer, in a memo sent to employees.

“We know that market conditions continue to erode and the future is uncertain,” Clarke wrote. Dell expects to book the costs related to the layoffs in its fiscal fourth quarter ending in January.

Rival HP also said it would cut up to 6,000 jobs. According to the market research company IDC, the market for PCs and tablets faces another year of decline with a 2.6 percent decline in 2023, after rapid growth due to remote work during the pandemic.

“It was only a matter of time before a wave of tech layoffs hit Dell’s shores, given the company’s vulnerability to both consumer and corporate confidence,” Hargreaves Lansdown market analyst Susannah Streeter told the NY Post. As of January 28, 2022, Dell had about 133,000 employees, about a third of whom worked in the United States.

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