Dell Technologies Inc. has 1,33,000 employees, about a third of whom are based in the US, where the company is headquartered.
Jeff Clarke, Dell’s vice chairman and co-COO announced cutting 6,650 Jobs or About 5% of its global workforce, as it faces falling demand for personal computers.
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Job Cuts
Now Dell is becoming the latest technology company to announce thousands of job cuts after Google, Twitter, and Microsoft. After a pandemic-era PC boom, Dell and other hardware makers have seen cratering demand.
Source: Google
Industry analyst IDC said “preliminary data show personal computer shipments dropped sharply in the fourth quarter of 2022. Among major companies, Dell saw the largest decline with 37 percent as compared with the same period in 2021, according to IDC. Dell generates about 55 percent of its revenue from PCs.”
‘Steps we’ve taken to stay ahead of the downturn impacts … are no longer enough. We now have to make additional decisions to prepare for the road ahead,’ wrote Dell Co-COO Jeff Clarke in a memo to employees Monday.
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According to a company spokesperson, Clarke told workers that previous cost-cutting measures, including a pause on hiring, travel restrictions, and expense reductions were insufficient that ultimately failed to turn conditions to Dell’s advantage.
The department reorganisations, along with the job reductions, are viewed as an opportunity to drive efficiency,
According to the report, a memo from co-chief operating officer Jeff Clarke to employees said, “The company is experiencing market conditions that “continue to erode with an uncertain future,”
Source: Google
“Unfortunately, with changes like this, some members of our team will be leaving the company,” Clarke wrote. “There is no tougher decision, but one we had to make for our long-term health and success. Please know we’ll support those impacted as they transition to their next opportunities.”
From the start of the year, lakhs of tech employers lost their jobs.
According to the website layoffs.fyi, which monitors tech industry job cuts globally, more than 290 tech companies have announced 88,000 jobs cuts so far this year, compared with nearly 160,000 for the entirety of 2022
Companies like Microsoft to Amazon and Goldman Sachs have recently cut thousands of employees’ jobs to face the decrease in demand due to inflation and rising interest rates.
Source: Google
According to consulting firm Challenger, Gray & Christmas Inc, Layoffs have affected the tech sector in recent months, including many of Dell’s peers and competitors.
HP Inc., similarly exposed to the PC market, announced in November a reduction of as many as 6,000 workers.
Cisco Systems Inc. and International Business Machines Corp. each said that they would remove about 4,000 workers.
The tech sector announced 97,171 job cuts in 2022, compared with the previous year up 649%.
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