The crisis in the technology sector is leaving no one behind. The well-known brand Dell Technologies joins the long list of companies that are laying off in a big way. In this case, Dell will cut no less than 6,650 jobs, or in other words, it will reduce 5% of its worldwide workforce.
The company is facing conditions that suggest an “uncertain future”, or at least that’s what Jeff Clarke announced in a release. After the boom in personal computers during the pandemic, Dell and other manufacturers have seen sales plummet. One industry analyst IDC said that according to preliminary data, PC shipments had declined sharply during the fourth quarter of 2022.
Among the most popular manufacturers, Dell recorded the biggest drop of all: no less than 37% compared to the same period in 2021, according to data collected by IDC. It is worth remembering that more than half of Dell’s revenue (55%) is supported by PC sales.
Clarke lamented in front of his workers and admitted that previous cost-cutting measures (including hiring breaks and limiting travel) are no longer sufficient. Reorganization of departments, along with job cuts are considered the best measures to “increase efficiency” (or at least that’s what Dell’s spokesman maintains).
Layoff fever increases in large companies
In recent times, technology companies have been betting on massive layoffs to settle accounts. Another major PC maker, HP, announced last November that it was cutting 6,000 jobs. Cisco and IBM also said they would lay off 4,000 employees each.
After the layoffs, Dell will be left with the lowest number of employees in 6 years. Specifically, there are 39,000 fewer employees than in January 2020. Sales estimates have not been good for Dell and it is a fact that after the pandemic, the technology boom has declined in much of the world.