Dell to lay off 6,650 employees amidst slumping PC demand
Dell is cutting around 6,650 jobs due to a drop in demand for PCs, affecting roughly 5% of its global workforce. According to a report by Bloomberg, Dell’s Co-Chief Operating Officer, Jeff Clarke claimed that the company is facing tough market conditions with an uncertain future. The layoffs can be attributed to the ongoing challenges in the personal computer industry.
With this, Dell has become the latest tech company to announce layoffs. Dell did not immediately respond to a Reuters email for comment.
Dell
Technology Company
- CEO: Michael Dell is the CEO and chairman of Dell Technologies Inc.
- Headquarters: Round Rock, Texas, United States
- Founder: Michael S. Dell
- Founded: 1 February 1984, Austin, Texas, United States
- Number of employees: 133,000
- Parent: Dell Technologies
In the employee memo, Clarke said, “We’ve navigated economic downturns before and we’ve emerged stronger. We will be ready when the market rebounds.”
The previous cost-cutting measures, including a pause on hiring and limits on travel, are no longer enough, Clarke said in the memo. The company had announced a similar layoff in 2020 when the Covid pandemic hit.
According to IDC, there has been a decline in demand for personal computers following a surge in demand during the pandemic. This is reflected in the decrease in PC shipments during Q4 2022. Among major corporations, Dell saw the largest loss with a 37% drop compared to Q4 2021. PCs make up approximately 55% of Dell’s revenue.
The company’s fourth-quarter earnings announcement, set for March 2, is expected to reveal more information about the impact of job cuts on finances. The computer industry has been severely impacted by layoffs in recent months, affecting not only Dell but also many of its competitors such as HP Inc. In November, HP Inc. announced layoffs of 6,000 employees.
The tech sector announced 97,171 job cuts in 2022, up 649 percent compared with the previous year, according to consulting firm Challenger, Gray & Christmas Inc.
It is important to note that layoffs can occur for various reasons, such as company restructuring, declining sales, or economic downturns.
A spate of layoffs has been observed across major technology companies in 2023. Microsoft recently terminated the employment of 10,000 workers, while Amazon laid off 18,000 and Google laid off 12,000 employees.
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