Lenovo and Dell are among the growing list of tech companies that have said they will cut costs due to the Covid-19 pandemic and lockdown.
The two scomputer hardware and server giants saw supply chain disruptions, falling demand, and an uncertain future.
This is going to be a long year
"Like every business today, we are continually managing our cost structure to ensure long-term competitiveness, including undertaking targeted expense saving actions in certain areas," a Lenovo spokesperson told CRN. The company did not disclose the nature of the cuts.
Dell, meanwhile, will 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 program.
“While it’s difficult to predict the shape of the slowdown and a recovery, our job is to prudently manage our business so that we’re in a strong position on the other side of this situation,” Dell Chief Operating Officer Jeff Clarke wrote to employees in a memo seen by Bloomberg.
“Given the economic uncertainty that continues, we’ve made another tough decision to maintain the strength of our team and future of our company.”