Dell To Layoff 6,650 Employees, 5% Of Its Global Workforce

Dell Technologies is also in the queue of tech layoff trends. The company has decided to layoff its 6,650 employees, which is about 5% of its global workforce.

Dell is now the most recent computer business to announce layoffs as a result. Co-Chief Operating Officer Jeff Clarke wrote in a document seen by Bloomberg that the company is dealing with market conditions that “continue to degrade with an uncertain future.”

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 had said in November that it would reduce as many as 6,000 positions over the following three years due to a decline in the demand for personal computers that has hurt revenues. 

Also Read: How long will Apple be the only tech giant to have avoided recent major layoffs?

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.

After the cut, Dell’s headcount will be at its lowest point in at least six years, with around 39,000 fewer workers than in January 2020. 

Dell is based in Round Rock, Texas. Based on a March 2022 filing, only around one-third of the company’s employees are based in the US.

On January 15, the business made the decision to rely less on Chinese chips in light of the growing competition between the two nations. 

Also Read: Alphabet’s Google To Layoff 12,000 Employees Globally

In the field of chip technology, this represents a setback for China, according to Valerio Fabbri’s article for Geopolitica.info. 

It declared that it wanted to rely less on chips produced in China, including those produced by foreign companies. The business has stated that it will no longer use Chinese-made chips by 2024.