Dell has asked its employees to consider taking up to 5 days of unpaid leave in the next 3 months.
The computing giant has already made 8900 job cuts but is now having to ask staff to make sacrifices as well as imposing a global recruitment freeze.
An email went out to employees at the beginning of the week from chief exec Michael Dell, in which he also admitted things are going to get even tougher with further consolidation in the technology industry.
Dell added during the Salesforce.com Inc's developers conference in San Francisco that the company is not going to cut back on R&D, despite economic pressures, and is going to pump money into cloud computing technology.
"Being stunned into inaction is exactly the wrong thing to do right now."