Dell will lay off approximately 6,650 workers as PC sales fall.
PC shipments are plunging The company is suffering from a difficult economy and a pandemic recovery. This has been especially hard for Dell. The company is laying off About five percent of the company’s workforce (roughly 6,650) was required to deal with a “challenging international economic environment.” Jeff Clarke, operations chief, said that earlier cost-reduction measures such as an external hiring freeze were not enough. He says that a market that is “continually to erode” needs further action.
Clarke says that the layoffs will include organizational changes as well as “resets”. This includes sales and service optimizations, as well engineering that focuses more on “priority offering”. Bloomberg notes These job cuts will see Dell’s employee number drop to 6 years and 39,000 below the January 2020 pandemic.
The pandemic saw a surge in remote-worker purchases, and Dell was one major beneficiary. Now that the boom is over, however, the firm’s dependence on computers (approximately 55 percent of its revenue) is becoming a liability — particularly in an economic climate where purchasing power is dropping. Gartner and IDC estimate that Dell’s shipments fell 16 percent in 2022, compared to the previous year and 37% in the past quarter. This is one of the most severe declines among the major PC vendors. Only Acer suffered a 41% drop in the fourth quarter.
This is the latest update in a series of layoffs this yearIt comes months after HP, a key competitor, announced it would lay off up to 6,000 employees. In recent months, tech companies have suffered a lot. Even successful ones like Apple have had to take a big hit. grappling with falling sales. Simply put, Dell will only be able to recover once the whole industry has turned the corner.