Joining the list of companies ditching their employees to stay afloat, Dell Technologies announced laying off around 6,650 employees soon, citing the ongoing economic situation.
This represents 5% of Dell’s total workforce and brings the overall headcount to the lowest in six years. The company says other efforts to cut costs weren’t successful, so they had to lay off some employees to save itself.
Dell Ditching it’s Employees
Following the suit of it’s peers like HP Inc, Dell Technologies today announced laying off thousands of employees, citing the ongoing economic turmoil. In a memo shared by the company’s Co-Chief Operating Officer, Jeff Clarke, he noted laying off around 6,650 employees soon.
That’s around 5% of Dell’s global workforce – ditching due to market conditions that “continue to erode with an uncertain future,” as per the memo. Well, IDC estimated that Dell had faced one of its worst declines in recent times – with the PC industry taking a sharp toll on sales in Q4 2022.
During this period, Dell has reportedly faced a 37% fall in growth compared to the same period in 2021. This is huge, considering that Dell generates about 55% of it’s revenue from PCs. Since it’s not able to keep up, and other cost-cutting measures like hiring freeze and travel limits failed – Dell has to ditch some employees.
Talking about this situation, Clarke said, “We’ve navigated economic downturns before, and we’ve emerged stronger. We will be ready when the market rebounds.” Well, according to Challenger, Gray & Christmas Inc, the tech sector has dumped more than 97,000 jobs in 2022 – up 649% compared to last year.
This includes Dell’s rivals like HP Inc, which laid off 6,000 workers in November last year, followed by Cisco Systems Inc. and IBM, each dumping 4,000 workers, citing similar market conditions.
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