Dell is cutting more than 6,000 employees due to falling demand for PCs

The American Dell Technologies has decided to cut about 6,650 employees after facing a drop in demand for personal computers. Thus, Dell became the last technology company to announce mass layoffs. This is reported by Bloomberg with reference to a memo that the agency has seen.

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“The company is experiencing market conditions that continue to deteriorate with an uncertain future,” Chief Operating Officer Jeff Clarke wrote in a memo.

According to a representative of the company, the cuts make up about 5% of Dell’s global workforce.

After a boom in the personal computer market during the pandemic, Dell and other manufacturers faced a drop in demand. Industry analyst IDC reported that according to preliminary data, shipments of personal computers fell sharply in the fourth quarter of 2022.

Among large companies, the largest decline was observed at Dell — 37% compared to the same period in 2021. It should be noted that Dell receives about 55% of its income from the sale of PCs.

Clark said that preliminary measures to cut costs, including a hiring freeze and restrictions on business trips, are no longer enough. The reorganization of the department together with the reduction of workplaces is considered as an opportunity to increase efficiency.

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After the cut, the number of employees at Dell, based in Round Rock, Texas, will be the lowest in at least six years — approximately 39,000 fewer employees than in January 2020. Only about a third of the company’s employees work in the United States.

Layoffs in recent months have hit the technology sector, including many of Dell’s colleagues and competitors.

The HP company, also dependent on the personal computer market, announced in November that it would cut 6,000 employees.

Cisco Systems Inc. and International Business Machines Corp. announced that about 4,000 workers would be laid off.

Let’s remind

Earlier, “Ministry of Finance” wrote that Sundar Pychai, the head of Alphabet and Google, sent a letter to the company’s employees in which he talked about the layoff of 12 thousand people.

Source: Ministry of Finance

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