Guwahati: Dell Technologies Inc. has chosen to lay off around 6,650 people due to the sharp decline in demand for personal computers.
According to media reports, the company is experiencing market conditions that “continue to erode with an uncertain future,” Co-Chief Operating Officer Jeff Clarke wrote in a memo viewed by Bloomberg. The reductions amount to about 5 percent of Dell’s global workforce, according to a company spokesperson.
“We’ve navigated economic downturns before and we’ve emerged stronger,” Co-Chief Operating Officer Jeff Clarke wrote in his note to employees.
“We will be ready when the market rebounds,” he added.
It should be noted that the business had previously declared a similar layoff in 2020, just before the Covid epidemic struck.
The fourth quarter of 2022 saw a dramatic decline in personal computer shipments, according to industry analyst IDC’s preliminary figures. According to IDC, Dell experienced the highest drop in business with a 37 percent decrease from the same time in 2021. PC sales account for around 55% of Dell’s total income.
HP previously announced that it would cut up to 6,000 positions over the following three years in the month of November. This choice was made with the diminishing demand for personal computers in mind, which has hurt profits.
Not only that, but both Cisco Systems Inc. and International Business Machines Corp. had already announced that they would lay off roughly 4,000 employees apiece. According to consultancy company Challenger, Gray & Christmas Inc., the tech sector disclosed 97,171 job cutbacks in 2022, an increase of 649 percent from the previous year.
Another rumour claims that Dell, situated in Round Rock, Texas, will have its lowest employment count in at least six years, with around 39,000 fewer workers than in January 2020. According to a March 2022 filing, only around one-third of the company’s employees are based in the US.