Dell layoffs: The layoffs in Dell come at a time of slow demand for company’s personal computers for nearly two years.
Dell Technologies said that it will reduce its workforce as part of a broader initiative to cut costs. In a filing, the company said that it will limit external hiring and begin employee reorganization. The company has 120,000 employees, down from about 126,000 a year earlier as of February this year.
Read More: Petrol, Diesel Fresh Prices Announced On March 26: Know Fuel Rates In Your City
What is the reason for layoffs in Dell?
The layoffs in Dell come at a time of slow demand for company’s personal computers for nearly two years. This has resulted in a 11% drop in revenue in fourth-quarter earnings posted last month as Dell said that it expects net revenue in its client solutions group (CSG) to grow for the entire year but it had fallen 12% in the fourth quarter. Although, the company said that demand will improve and near-term challenges will be managed as it expects input costs. The company also said that there is likely to be “continued reduction of our other businesses’ net revenue as a result of the change in our commercial relationship with VMware”, as per the filing.
Read More: Motilal Oswal says Paytm revenue to fall by 24%. Google Pay, PhonePe to benefit?
Dell’s layoffs in 2023
Last year, Dell slashed 6,650 jobs as it said that it was preparing for a potential recession while demand for personal computers dwindled.
Read More: Airtel may hike tariffs post Lok Sabha elections. Will Jio do the same?
More trouble in Dell?
Earlier Dell reportedly told remote workers that they can continue working from home but they will not be considered for promotions. In a departure from its hybrid work culture- which had started even before Covid pandemic struck-the company pushed for a strict return-to-office (RTO) policy and informed employees of a return-to-office mandate, categorising them as “hybrid” and “remote” workers.
