Summary: Dell is considering laying off approximately 6,650, or 5%, of its employees due to declining PC sales. The company grew its workforce during the pandemic but has seen a sharp decline in demand and no longer needs as many employees. Competitors in the computer business have also announced job-cutting moves, and the tech sector as a whole has seen massive job cuts.
Giant computer maker Dell is considering laying off approximately 6,650 (or 5%) of its employees due to declining PC sales. If the plan goes through, the multinational company would have a total of 126,000 employees, according to data compiled by Bloomberg.
In an internal memo from Co-Chief Operating Officer Jeff Clarke, the company stated that it is suffering from poor market conditions that are affecting its future outlook.
During the pandemic era, Dell’s workforce grew from 145,000 in 2018 to 165,000 in 2020, boosted by sales from people working from home and needing PCs. However, those demands have sharply declined, and the company no longer needs as many employees. Industry analyst IDC reported that Dell suffered a 37% loss in shipments compared to the same period in 2021.
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Sensing trouble, the computer seller has paused hiring and imposed restrictions on work-related travel, but these measures were not enough to get the company back on a sustainable path.
Dell is not alone, as its competitors in the computer business have also announced job-cutting moves. HP announced layoffs of around 6,000 employees in November 2022, while Cisco and IBM announced layoffs of 4,000.
The tech sector as a whole has seen massive job cuts, affecting hardware makers, service providers, streaming platforms, and social media companies.
Despite the challenges, Clarke is positive that Dell will come out of this period stronger and more efficient. In the past five days, the company’s stock has appreciated by over 5%, which is better than its performance over the last six months.
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