Computer manufacturer Dell is going according to a report from Bloomberg. Announced inside a memo On Monday, Dell Co-Chief Operating Officer Jeff Clarke said the company’s previous cost-cutting measures, such as a hiatus in hiring and restrictions on travel, have proven insufficient, and that the company is experiencing market conditions that “continue to crumble with an uncertain future.” ”
The layoffs were announced in light of declining demand for PCs and laptops. After a surge in PC sales during the global Covid pandemic, most major computer manufacturers are now seeing a sharp drop in demand. This is reported by industry analyst IDC a drop of 37 percent in Dell’s computer shipments during the recent holiday quarter compared to the same three-month period the previous year. Bloomberg reports that 55 percent of Dell sales is generated from PC sales.
After the layoffs, Dell will have 39,000 fewer employees globally compared to its peak in January 2020.
Clarke said job cuts are essential to Dell’s “long-term health and success,” and departmental reorganizations are seen as an opportunity to drive efficiency and drive innovation. After the layoffs, the number of global Dell employees will hit its lowest figure in six years, according to Dell Bloombergwith approximately 39,000 fewer positions compared to the 165,000 full-time jobs reported in January 2020. “We’ve navigated economic downturns before and we’ve come out stronger,” said Clarke. “We will be ready when the market recovers.”
Dell isn’t the only computer brand affected by declining hardware demand. In November, HP announced plans to about 6,000 jobs cutwhile Lenovo laid off an unknown number of its US employees in December 2022. The wider technology industry has also been hit by a downturn in the economy due to slow growth, overrentand supply chain issues, with Meta, Google, Microsoft and Amazon all announcing mass layoffs in recent weeks.
