Dell will cut approximately 6,600 jobs as a result of falling PC sales.
Layoffs at Dell: According to a 2022 filing, only about one-third of employees are based in the United States.
Dell Technologies Inc., facing falling demand for personal computers, will lay off approximately 6,650 workers, becoming the latest technology company to announce job cuts.
The company is dealing with market conditions that “continue to erode with an uncertain future,” according to a memo obtained by Bloomberg. According to a company spokesperson, the layoffs amount to about 5% of Dell’s global workforce.
Dell to slash about 6,650 jobs -Bloomberg News https://t.co/nzixlnYIDi pic.twitter.com/cRZjisy7ZB
— Reuters (@Reuters) February 6, 2023
Dell and other hardware manufacturers have seen a drop in demand following a pandemic-era PC boom. According to preliminary data from industry analyst IDC, personal computer shipments will drop dramatically in the fourth quarter of 2022. According to IDC, Dell experienced the greatest decline among major corporations, with a 37% drop compared to the same period in 2021. PCs account for approximately 55% of Dell’s revenue.
Also Read: Layoff Season: Google to lay off 10,000 employees based on performance
In recent months, the tech sector has been hit hard by layoffs, including many of Dell’s peers and competitors. HP Inc., which is also heavily invested in the PC market, announced a 6,000-person layoff in November. Cisco Systems Inc. and International Business Machines Corp. both announced layoffs of approximately 4,000 employees. According to consulting firm Challenger, Gray & Christmas Inc., the tech sector announced 97,171 job cuts in 2022, an increase of 649% from the previous year.
Due to the increased rivalry between the two countries, the company decided on January 15 to reduce its reliance on Chinese chips. According to Valerio Fabbri of Geopolitica.info, this represents a setback for China in the chip-technology sector. It stated that it wished to reduce its reliance on chips manufactured in China, including those manufactured by foreign firms. The company has stated that it will no longer use Chinese-made chips by 2024.
