Dell plans lay offs amid Covid-19 uncertainty: Report

New Delhi

According to a report in UK-based Data Center Dynamics on Tuesday, Dell Technologies' Chief Operation Officer Jeff Clarke informed the upcoming job cuts in a quarterly all-hands meeting.

"We're also evaluating our business to make sure we have the right number of team members in the right roles and in areas where customers need us most," a company spokesperson said in a statement.

"And, we're addressing our cost structure to make sure we're as competitive as we should be now and for future opportunities. While we do this type of organisational review regularly, and while it always results in some job loss or restructuring, we recognise that there is nothing routine about today's environment."

In an open letter to staff last month, CEO and Founder Michael Dell warned that there would be no return to pre-pandemic norms for the foreseeable future.

In May, Dell said it would be cut costs, freeze pay raises and "hiring for the rest of the fiscal year, as well as discontinuing contributions to employees' 401(k) retirement plans under a matching programme".

In the same month, Arvind Krishna-led tech giant IBM joined the league of companies who started firing employees in tough Covid-19 times.

"Recognizing the unique and difficult situation this business decision may create for some of our employees, IBM is offering subsidized medical coverage to all affected US employees through June 2021," said a company spokesperson.

IBM, however, did not disclose how many workers are affected but media reports said thousands of employees were set to lose jobs in at least five states of the US.