Mass layoffs in the tech sector have been making headlines the past few months with several tech giants like Alphabet, Microsoft and Meta announcing mass layoffs
The job cuts are expected to affect about 5% of its global workforce.
The company faced tough market conditions with an uncertain future and its previous cost-cutting measures were no longer enough, co-chief operating officer Jeff Clarke wrote in a memo.
Dell, based in Round Rock, Texas, announced similar lay-offs in 2020, after the pandemic hit.
After a pandemic-era PC boom, Dell and other hardware makers have seen cratering demand. Industry analyst IDC said preliminary data shows PC shipments dropped sharply in the fourth quarter of 2022. Among major companies, Dell saw the largest decline — 37% compared to the same period in 2021, according to IDC. Dell generates about 55% of its revenue from PCs.
Layoffs have hammered the tech sector in recent months, including many of Dell’s peers and competitors
Clarke told workers that previous cost-cutting measures, including a pause on hiring and limits on travel, are no longer enough. The department reorganisations, along with the job reductions, are viewed as an opportunity to drive efficiency, the spokesman said.
Layoffs have hammered the tech sector in recent months, including many of Dell’s peers and competitors.