Computer maker Dell is set to cut about 6,650 jobs representing 5 percent of its global workforce, according to a report from Bloomberg. Announced in a memo On Monday, Dell co-chief operating officer Jeff Clarke said the company’s past cost-cutting measures, such as a hiring pause and travel limitations, have proven insufficient and the company is experiencing market conditions. that “continue to erode with an uncertain future.”
The layoffs were announced amid falling demand for PCs and laptops. Following a surge in PC sales during the global covid pandemic, most major PC manufacturers are now seeing a sharp drop in demand. Industry analyst IDC reported a 37 percent decrease in Dell PC shipments during its last holiday quarter compared to the same three-month period the previous year. Bloomberg reports that 55 percent of Dell revenue is generated from PC sales.
After the layoffs, Dell will have 39,000 fewer employees worldwide compared to its peak in January 2020.
Clarke said the job cuts are essential to the “long-term health and success” of Dell, and the department shakeups are seen as an opportunity to boost efficiency and innovation. Following the layoffs, Dell’s global employee count will be at its lowest in six years, according to Bloombergwith about 39,000 fewer roles compared to 165,000 full-time roles reported in January 2020. “We’ve navigated economic downturns before and come out stronger,” Clarke said. “We will be ready when the market recovers.”
Dell isn’t the only computer brand affected by falling demand for hardware. In November, HP announced plans to cut around 6,000 jobswhile lenovo laid off an undisclosed number of its US workforce in December 2022. The broader tech industry has also been hit by a downturn in the economy as a result of slow growth, overhiringand supply chain woes, with Meta, Google, Microsoft and Amazon announcing massive layoffs in recent weeks.
