According to Bloomberg, computer manufacturer Dell plans to cut approximately 6,650 jobs or 5% of its global workforce.
Dell Co-Chief Operating Officer Jeff Clarke announced in a memo on Monday that the company’s previous cost-cutting measures, such as a pause on hiring and travel restrictions, had proven insufficient, and that the company is experiencing market conditions that “continue to erode with uncertain future.”
The layoffs were announced in response to a drop in demand for PCs and laptops. Following a surge in PC sales during the global flu pandemic, most major computing manufacturers are now experiencing a significant drop in demand.
According to IDC, Dell’s computer shipments fell 37% during the recent holiday quarter compared to the same three-month period the previous year. According to Bloomberg, PC sales account for 55% of Dell’s revenue.
Clarke stated that the job cuts are necessary for Dell’s “long-term health and success,” and department reorganisations are viewed as a chance to drive efficiency and boost innovation.
According to Bloomberg, the number of global Dell employees will be at its lowest in six years following the layoffs, with approximately 39,000 fewer roles compared to the 165,000 full-time roles reported in January 2020.
“We’ve navigated economic downturns before and we’ve emerged stronger. We will be ready when the market rebounds,” said Clarke.
Dell isn’t the only computing brand affected by falling hardware demand. HP announced plans to cut around 6,000 jobs in November, while Lenovo laid off an unspecified number of its US workforce in December 2022.
The broader tech industry has also been impacted by a slowing economy, over-hiring, and supply chain issues, with Meta, Google, Microsoft, and Amazon all announcing mass layoffs in recent weeks.