Dell Technologies Inc will cut 6,650 positions, or approximately 5% of its global workforce, due to dwindling demand for its personal computers.
According to the article, the firm is encountering market circumstances that “continue to degrade with an uncertain future,” according to a message from co-chief operating officer Jeff Clarke to staff. Clarke claims that previously adopted cost-cutting measures such as a hiring freeze and travel restrictions.
According to a business representative, department reorganization and employment layoffs will increase efficiency. Dell announced a 6% drop in sales for the quarter that ended October 28th and forecasted lower-than-expected revenue for the current quarter. The business stated that their reduced projection was due to consumers lowering their IT purchases. When the firm announces its fiscal fourth-quarter results on March 2nd, it is likely to reveal further information about the financial impact of its employment reduction.
Many companies, ranging from Microsoft to Amazon and Goldman Sachs, have recently laid off thousands of employees to withstand the decrease in demand due to inflation and rising interest rates. The tech industry has been greatly impacted by layoffs recently, with many of Dell’s peers and competitors also feeling the effects. HP Inc., which faces similar challenges in the PC market, announced plans to lay off up to 6,000 employees in November.
Similarly, Cisco Systems Inc. and International Business Machines Corp. both declared that they would cut around 4,000 jobs. Consulting firm Challenger, Gray & Christmas Inc reported that the tech sector saw 97,171 job cuts in 2022, an increase of 649% compared to the previous year.
According to the report, last month itself, the tech sector saw 41,829 jobs being slashed, the highest across industries.
A slowdown in consumer demand post the Covid-19 years and uncertain macroeconomic conditions triggered mass layoffs across major US tech firms over the past few months.
