The layoffs will affect more than 6,600 jobs. The reason for this decision by the company’s management is the decline in PC sales.
Dell Technologies Inc. will cut about 6,650 jobs due to a sharp drop in demand for personal computers. This was reported on February 6 by Bloomberg.
The company’s chief operating officer, Jeff Clark, said the reduction would affect 5% of the company’s global staff.
Dell faces uncertain market conditions and previous austerity measures, including a hiring freeze and restrictions on travel spending, are no longer enough, he said.
The company plans to reorganize divisions and cut jobs, hoping to increase the productivity of operations by doing so.
Dell’s staff after the planned reduction will be the lowest in six years, write Bloomberg. Only a third of the company’s employees are located in the United States.
It is noted that after the boom of computers during the pandemic, Dell and other manufacturers are facing a decrease in demand.
Analysts indicated that PC shipments fell sharply in the fourth quarter of 2022, with Dell experiencing the largest decline among large companies, down 37% compared to the same period in 2021. At the same time, the tech giant receives about 55% of its revenue from PCs.
The agency noted that layoffs have hit the technology sector in recent months, including at many of Dell’s competitors.
HP Inc. announced in November that it would lay off 6,000 employees. Cisco Systems Inc. and International Business Machines Corp. announced that they would be laying off approximately 4,000 workers.
Alphabet Inc, the parent company of Google, previously announced the reduction of approximately 12 thousand jobs, or 6% of its employees.
Amazon will lay off more than 18,000 employees
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.