The computer manufacturer Dell would be about to cut approx 6,650 jobs. I layoffs represent the 5% of the workforce Dell Global. The reason seems to be linked to the decline in PC demand, after the large revenues of the pandemic period.
Dell ready to announce 6650 layoffs
Anticipated by Bloomberg, the announcement of a workforce restructuring came in a note Monday, from Dell’s co-Chief Operating Officer, Jeff Clarke. According to the manager, the company’s previous cost-cutting measures have not helped: the hiring suspension and travel restrictions they weren’t enough.
The layoffs were announced as demand for PCs and laptops fell. Industry analyst IDC reports a 37% drop in Dell’s computer shipments during the last quarter. According to Bloomberg, 55% of Dell’s revenue comes from PC sales.
Clarke said the job cuts are for Dell’s “long-term health and success.” According to Bloomberg, this cut will bring the number of Dell employees globally to the lowest figure in six years, with approximately 39,000 fewer roles than the 165,000 full-time roles reported in January 2020.
Dell is not alone in having fired a significant portion of its employees, due to the decline in the tech market. In November, HP announced the approximately 6,000 jobs, Lenovo laid off an unknown number of employees and in December 2022. To these are added Meta, Google, Microsoft e Amazon: all have announced mass layoffs in recent weeks.
At the moment it is not clear whether these layoffs have an effect in the medium to long term. To date, Dell’s shares remain in the red.