Dell is to close its desktop computer manufacturing plant early next year in Winston-Salem North Carolina with the loss of 905 jobs.
Some 600 jobs will go next month with closure complete in January next year.
"This is a difficult decision, especially for our North Carolina colleagues, but a necessary one for Dell customers and our company," said Frank Miller, vice president, Public Business Unit Supply Chain:
The company annouced the sale of its Tennessee remanufacturing operation to GENCO in June.
The affected employees will receive competitive severance packages, including severance pay, incentive payments, benefits continuation and outplacement services, Dell said.
Speaking last month Michael Dell, chairman and CEO of Dell, said that the firm had been successful in cutting costs and anticipated a recovery in IT spending. "If current demands trends continue, we expect revenue for the second half of the year to be stronger than the first half," he said.