Dell is apparently intending to lay off 6,650 employees, or around 5% of its global workforce. According to an internal document received by Bloomberg from Dell’s co-CEO Jeff Clarke, the company’s past cost-cutting initiatives, such as a hiring freeze and travel limitations, are “no longer sufficient.” Clarke appears to add in the message that the firm would emerge stronger since it has successfully survived previous economic downturns. Dell lay off an unspecified number of employees during the peak of the COVID-19 pandemic in 2020 to “prepare for the uncertainty provided” by the pandemic.
The study does not say which departments will be the worst hit by the new wave of layoffs. Citing a spokesperson, the report adds, “Department reorganisations, along with the job reductions, are viewed as an opportunity to drive efficiency.”
Dell will have around 39,000 fewer employees as a result of the layoffs. According to a March 2022 filing, just around one-third of the company’s employees are situated in the United States.
Dell confirmed the layoffs to India Today Tech but did not say how many jobs were lost. The company stated in a statement:
“Dell continuously assesses our business to ensure we’re set up to deliver the best innovation, value and service to our customers and partners. This is especially important as economic uncertainty has continued. Since June, we paused external hiring and reduced spending to navigate a challenging global environment. We have further opportunity to drive efficiency through department reorganizations, which has resulted in a reduction of team members across the globe. This is a difficult decision that was not made lightly, and we’ll support those impacted as they transition to their next opportunity.”
Dell, like other PC makers, is experiencing significant problems in the face of uncertain economic conditions. According to Gartner, worldwide PC shipments would be down 28.5% year on year to about 65.3 million units in the fourth quarter of 2022. PC shipments totaled 286.2 million units in 2022, a 16.2 percent decrease from 2021.
According to Gartner, Dell and HP had large declines in the fourth quarter as a result of the global crisis, inflation, and rising loan rates. Dell’s quarterly shipments fell 37%, and the company now has the third-largest PC market share in the world, at 16.7%.
Earlier in November 2022, HP said that it will lay off many employees before the conclusion of its fiscal year in 2025. The corporation intends to lay off 6,000 people, or around 12% of its global workforce.
Aside from Dell and HP, numerous other technology businesses are laying off workers to save money. According to a tech layoff tracker, January 2023 was the worst month for job losses in the IT sector when compared to December and November combined. Last month, around 106,950 people were laid off, with staff at Microsoft, Google, and Amazon bearing the brunt of the burden.
Most layoffs have been blamed on macroeconomic factors, however many firms overhired across industries during the first two years of the COVID-19 epidemic. So far, Apple is the only corporation that has avoided widespread layoffs in order to reduce costs. Apple CEO Tim Cook also stated that layoffs are a last choice, but nothing is ever certain.
