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 Dellโ€™s global workforce and will have the lowest headcount in six years. Previous cost-cutting measures like travel restrictions and hiring freeze didnโ€™t help, as the company is forced to ditch thousands of employees to stay afloat โ€“ says a spokesperson.

Ditching Thousands of Employees

Following the suite of its peers โ€“ Dell Technologies announced cutting over 6,650 jobs across segments around the world. This represents 5% of the companyโ€™s total workforce and would have the least headcount in six years โ€“ about 39,000 fewer employees than in January 2020.

This comes from a memo penned by the companyโ€™s Co-Chief Operating Officer, Jeff Clarke, where he stated the company is facing an โ€œuncertain future,โ€ with market conditions โ€œcontinuing to erodeโ€ 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 havenโ€™t been significant โ€“ like a pause on hiring and limits on travel โ€“ 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;

โ€œWeโ€™ve navigated economic downturns before, and weโ€™ve emerged stronger. We will be ready when the market rebounds.โ€

Others in the industry have made similar moves too โ€“ 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 โ€“ up 649% compared to the previous year.

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