Dell Technologies joins the bandwagon of companies dismissing their employees due to ongoing economic turmoil, where the PC maker announced cutting 6,650 jobs soon.
That represents 5% of Dell’s global workforce and will have the lowest headcount in six years. Previous cost-cutting measures like travel restrictions and hiring freeze didn’t help, as the company is forced to ditch thousands of employees to stay afloat – says a spokesperson.
Ditching Thousands of Employees
Following the suite of its peers – Dell Technologies announced cutting over 6,650 jobs across segments around the world. This represents 5% of the company’s total workforce and would have the least headcount in six years – about 39,000 fewer employees than in January 2020.
This comes from a memo penned by the company’s Co-Chief Operating Officer, Jeff Clarke, where he stated the company is facing an “uncertain future,” with market conditions “continuing to erode” in the next quarters. Thus, in order to stay afloat, Dell is dumping thousands of its employees across the globe.
A spokesperson said the efforts to cut costs haven’t been significant – like a pause on hiring and limits on travel – as it pursues job reduction now. This comes after weak demand for the PC market post-COVID-19 pandemic, where people have reduced their spending on PC hardware.
As per IDC, the fourth quarter of 2022 has seen the worst shipment fall, with Dell seeing a 37% decline in sales compared to the same period in 2021. The company generates about 55% of its revenue from PCs, and this fall is a strong hit. Talking about this, Jeff Clarke wrote;
“We’ve navigated economic downturns before, and we’ve emerged stronger. We will be ready when the market rebounds.”
Others in the industry have made similar moves too – with HP Inc dumping around 6,000 workers, Cisco Systems Inc. and International Business Machines Corp cutting about 4,000 workers each! Overall, the tech industry announced 97,171 job cuts last year – up 649% compared to the previous year.