Dell is the latst IT vendor to announce jobs losses, planning to cut 8 000 jobs over the next year.
This is the first time the PC maker has cut jobs since 2001.
Even though Dell continues to turn a profit – even improving on last year – it has lost market share and has made some strategic changes over the last few months.
The job cuts, which will affect about 10% of the company's workforce, are part of an ongoing restructuring.
Dell is soon to attempt to sell some models of its computers through US retail giant Wal-Mart and some believe this could signal a move to a more indirect sales model in the future.