Dell to cut 5% workforce
Dell said in a regulatory filing Monday that it plans to lay off about 5% of its workforce, the latest example of a tech company cutting costs in an uncertain economic climate.
Dell reported 133,000 employees in January 2022. At that level, the 5% cut would affect over 6,500 employees.
The computing giant cited a "challenging global economic environment" as the reason for the layoffs. In a letter to employees, Dell's vice chairman, Jeff Clarke, stated that the company's previous steps, such as restrictions on employee travel and a halt on external hiring, were insufficient.
"What we know is that market conditions are deteriorating and the future is uncertain," Clarke told employees. "The steps we've taken to stay ahead of downturn impacts, which enabled several strong quarters in a row, are no longer sufficient. "We must now make additional decisions in order to prepare for the road ahead," the company stated.
The move comes as layoffs continue to plague the technology industry. Amazon, Microsoft, Google, and others have all announced plans to lay off thousands of workers as they adjust to shifting pandemic demand and concerns about an impending recession.
Dell has also struggled with decreased demand for personal computers.
According to Gartner, worldwide PC shipments will fall more than 28% in the fourth quarter of 2022 compared to the same period the previous year. This was the most significant quarterly shipment drop since Gartner began tracking the PC market in the mid-1990s.
According to Gartner, Dell saw a 37% decrease in PC vendor unit shipments during the final three months of 2022 compared to the previous year.
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