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Joining the likes of HP, Lenovo, computer giant Dell has announced that it is going to shred 6,650 jobs, i.e., 5% of its workforce amid decreasing demand for personal computers.
According to vice chairman and co-chief operating officer Jeff Clarke, the earlier cost-cutting measures like freezing external hiring, limiting travel and lowering outside services spending, have proved to be insufficient.
PC sales witnessed a boost during Covid but fell in Q4 2022, as per industry analyst IDC. Dell earns 55% of its revenue from PC sales but it recorded 37% drop in the same.
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“In the coming days and weeks, you’ll begin to see a series of changes—some resets—across the organization to better structure us for the future, to better collaborate, reduce complexity, increase speed and accelerate innovation,“ said Clarke.
Dell disclosed a 6% decrease in sales for the October ’22 period and provided a revenue projection for the current quarter that didn’t meet analysts’ expectations. Following the cuts, Dell’s headcount will reach its lowest point in the last six years, with a reduction of approximately 39,000 employees compared to January 2020. As per a March 2022 filing, only a third of the company’s workforce is based in the US.
Bigtech Layoff Storm is Still Going Strong
Dell is not the first one to lay off. HP announced last year that it will be laying 4,000 to 6,000 employees in the next three years. Lenovo also laid off an undisclosed number of its workforce in December 2022. Cisco also started firing 5% of its workforce, which is more than 4,000 of its employees.
Major players, including the likes of Amazon, Google, Twitter, Microsoft, and Salesforce, have collectively let go of nearly 55,000 employees worldwide, i.e., nearly 3–6% of their total headcount. Among these tech giants, only Apple has not yet announced any layoff, although it has paused hiring in many segments.
Read more: What Keeps Apple Buoyant in Rough Tides