Dell Technologies Inc., experiencing falling demand for personal computers, will lay off around 6,650 workers, becoming the latest technology business to announce job cuts. The firm is dealing with market circumstances that “continue to degrade with an unclear future”, according to a document seen by Bloomberg.
According to a corporate representative, the layoffs amount to around 5% of Dell's global workforce.
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Dell and other hardware manufacturers have noticed a drop in demand following a pandemic-era PC boom. According to preliminary statistics from industry researcher IDC, personal computer shipments declined dramatically in the fourth quarter of 2022. Dell saw the worst loss among significant corporations, with a 37% drop compared to the same period in 2021. PCs account for around 55% of Dell's revenue.
Co-Chief Operating Officer Jeff Clarke informed employees that past cost-cutting initiatives, such as a hiring freeze and travel restrictions, are no longer sufficient. According to the spokeswoman, the department reorganisations and job cuts are considered as a chance to increase efficiency.
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Dell announced a 6% drop in sales for the quarter ended October 28 and a revenue projection for the current quarter that fell short of analysts' expectations, citing customers' reduced purchases of information technology. When the business announces its fiscal fourth-quarter earnings on March 2, it is likely to disclose further details on the financial effect of the job cuts.
In recent months, the computer sector has been hit hard by layoffs, including many of Dell's rivals and competitors. HP Inc., which is also heavily invested in the PC sector, announced a 6,000-person layoff in November.
FAQs
1- Who owns Dell Technologies?
Michael Dell is the CEO and chairman of Dell Technologies Inc.
2- Is Dell a creation of China?
It is an American corporation that not only sells laptops and desktop computers but also makes, fixes, and markets various hardware and component parts for computers.
