Bloomberg News reported on Monday that Dell Technologies Inc. will lose around 6,650 positions, or approximately 5% of its global workforce, as a result of declining demand for its personal computers.
According to the article, a memo from co-chief operational officer Jeff Clarke to staff stated that the company’s market conditions are “continuing to deteriorate with an uncertain future.”
According to Clarke, the previously imposed cost-cutting measures, including a hiring freeze and travel limitations, were insufficient.
A corporate representative told Bloomberg News that the departmental reorganisation and employment layoffs will increase productivity.
Dell announced a 6% decline in sales for the period ended October 28 and presented a revenue forecast for the current quarter that was lower than anticipated. Customers’ reduced IT purchases was cited as the basis for the company’s reduced guidance. When it reports its fiscal fourth-quarter results on March 2nd, the corporation is likely to offer further information regarding the financial impact of its layoffs.
Microsoft, Amazon, and Goldman Sachs, among others, have lately laid off thousands of people in order to survive the decline in demand caused by inflation and rising interest rates.
In preparation for a possible recession, the number of layoffs in the United States reached a two-year high in January, notably in the technology sector.
In recent months, layoffs have had a significant impact on the computer industry, and many of Dell’s peers and competitors have also been affected. In November, HP Inc., which confronts similar issues in the PC market, will lay off up to 6,000 people.
Similarly, both Cisco Systems Inc. and International Business Machines Corp. announced they will eliminate approximately 4,000 positions. According to the consulting firm Challenger, Gray & Christmas Inc, the tech sector lost 97,171 jobs in 2022, a 649% increase over the previous year.
According to the data, the tech industry lost the most jobs across all industries last month, 41,829.
The wave of layoffs has affected not only startups and mid-sized businesses, but also large tech organisations such as Amazon, Microsoft, and Alphabet, the parent company of Google.
Bimal Mardi is a Professional Content Writer. He works in First Santal Broadcast Network TV/ News channel in India. Bimal Maradi writes about Technology, Education and Tech Product Reviews