Dell to Layoff 6,650 Employees Amid PC Industry Slump
Layoffs are sweeping across the tech industry as PC sales falter and companies shut down in preparation for the looming recession. Dell has not been spared these concerns and in the coming months he plans to lay off 6,650 employees. according to bloombergwhich represents about 5% of the company’s global footprint.
Over the past six years, Dell’s global workforce has peaked at 165,000 in 2020. But the latest cuts bring that figure down to just 126,300 employees.
and Note to employee (opens in new tab) Dell Vice Chairman and Co-Chief Operating Officer Jeff Clark said this morning: Lines – no longer enough. ”
As a cost efficiency measure, Dell will streamline operations, including reorganizing the Regional Sales and Dell Technologies Select teams to report to a single “Leader”. There are also changes to the Infrastructure and Client Solutions groups to reduce customer service costs.
Clark added that while Dell would be saddened to see a valued employee retire, it was a difficult decision “that it had to make for the sake of its long-term health and success.”
Global PC shipments in Q4 2022 fell 28% compared to the same period in 2021, according to IDC. At the time, the research firm said, “The pandemic boom in the PC market is over.
Dell isn’t the only company experiencing widespread layoffs in the tech industry. Microsoft will cut 10,000 positions during 2023 after rapidly increasing hiring during the pandemic. Hewlett-Packard said it would let go of 6,000 employees in November 2022, and Lenovo announced layoffs across its U.S. workforce in December.
According to Wu Jing Ho, senior analyst at Bloomberg Intelligence, Dell’s actions could “help reduce annual expenses from $700 million to $1 billion, preserve margins and contain EPS dents.” I have.