Dell, the American PC maker, has announced plans to cut 6,650 jobs, representing 5% of its workforce, amid concerns over a worsening market, with initial cost-saving measures such as hiring and travel freezes no longer sufficient.
Dell's co-chief operating officer, Jeff Clarke, stated: "What we know is market conditions continue to erode with an uncertain future.
The steps we've taken to stay ahead of downturn impacts … are no longer enough.
We now have to make additional decisions to prepare for the road ahead."
The move comes as many US tech firms are implementing cost-cutting efforts in response to economic uncertainty, with Dell following in the footsteps of industry giants such as HP, IBM and Oracle.
The job cuts will be felt across different departments including finance and marketing, as the company looks to streamline its business and focus on growth ahead of further downturns.
Despite the gloomy outlook, Dell's revenue actually rose 15% during its most recent quarter, and shares in the company rose slightly despite the announcement.
The company also plans to provide severance pay to those affected by the layoffs, and is said to be working with government agencies to ensure support is available for affected employees.