Dell Technologies will lay off 6,650 employees, about 5% of the technology company’s global workforce.
Dell Begins Layoffs: In another blow to the tech employees, Dell Inc has announced that it will eliminate 6.500 jobs or about 5 per cent of its global workforce, a Bloomberg report said. According to a memo viewed by Bloomberg, Co-Chief Operating Officer Jeff Clarke stated, “The company is experiencing market conditions that “continue to erode with an uncertain future.”
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Clarke, in his note to employees, wrote “We’ve navigated economic downturns before and we’ve emerged stronger.”
Why Dell Is Opting For Layoffs
Dell saw the largest decline in its personal computer shipments with 37 per cent as compared with the same period in 2021. Dell generates about 55 per cent of its revenue from PCs. Clarke told workers that previous cost-cutting measures, including a pause on hiring and limits on travel, are no longer enough.
After completing the layoffs, the headcount for Dell will be its lowest in at least six years at 1,26,300, Bloomberg reported.
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After a pandemic-era PC boom, Dell and other hardware makers have seen a decline in demand.
The tech industry overall seems to be going through a rough patch as several big organisations have gone for mass layoffs citing “market conditions”.Many of Dell’s peers and competitors like HP, Cisco, and IBM have opted for similar layoffs in the recent past.
The tech sector announced 97,171 job cuts in 2022, up 649% compared with the previous year, according to consulting firm Challenger, Gray & Christmas Inc.
