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Dell Halts 401(k) Matching, Pay Raises, Hiring to Preserve Cash

Signage is displayed on the headquarters campus of Dell Inc. in Round Rock, Texas.

Signage is displayed on the headquarters campus of Dell Inc. in Round Rock, Texas.

Photographer: Ed Lallo/Bloomberg

Dell Technologies Inc. has suspended some employee benefits, signaling that the computer hardware giant is cutting costs to contend with the weakening global economy.

The company will discontinue contributions to employees’ 401(k) retirement plans under a matching program, beginning June 1 and continuing at least until the end of the fiscal year, Dell Chief Operating Officer Jeff Clarke wrote to employees in a recent memo, citing the contracting economy and estimates of shrinking spending on information technology.