Dell Technologies Inc. has decided to lay off about 6,650 employees the decision of which was taken after facing plummeting demands for personal computers.
According to media reports, the company is experiencing market conditions that “continue to erode with an uncertain future,” Co-Chief Operating Officer Jeff Clarke wrote in a memo viewed by Bloomberg. The reductions amount to about 5 percent of Dell’s global workforce, according to a company spokesperson.
“We’ve navigated economic downturns before and we’ve emerged stronger," Co-Chief Operating Officer Jeff Clarke wrote in his note to employees.
“We will be ready when the market rebounds,” he added.
It is to be mentioned that the company had announced a similar layoff in 2020 when the Covid pandemic had hit.
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.
Previously, in the month of November, HP had said that it will eliminate as many as 6,000 jobs over the next three years. This decision was taken keeping in view the declining demand for personal computers that has cut into profits.
Not just this, Cisco Systems Inc. and International Business Machines Corp. each had also said that they would eliminate about 4,000 workers. The tech sector announced 97,171 job cuts in 2022, up 649 percent compared with the previous year, according to consulting firm Challenger, Gray & Christmas Inc.
According to another report, the headcount for Round Rock, Texas-based Dell will be its lowest in at least six years, about 39,000 fewer employees than in January 2020. Only about one-third of the company employees are US-based, according to a March 2022 filing.