Dell is cutting 6,650 jobs, or about 5 per cent of its workforce, due to falling PC demand and economic uncertainty, the company announced in a regulatory filing.
In a blog post, Jeff Clarke, vice chairman and co-chief operating officer, stated that the company would be “aligning Regional Sales and Dell Technologies Select teams”, integrating “support services into ISG and CSG”, and shifting ISG engineering “teams and resources to … priority offerings.” He also confirmed: “Unfortunately, with changes like this, some members of our team will be leaving the company.”
Dell’s layoffs come as global demand for PCs and laptops slows. According to IDC industry analysts, global PC shipments were down 28 per cent year on year in the fourth quarter of 2022. Dell’s computer shipments fell 37 per cent during the same time period.
Market conditions are “continuing to erode with an uncertain future,” according to Jeff Clarke. A corporate representative stated that departmental restructuring and job cuts have the potential to increase efficiency.
According to Dell, employees affected by these changes will hear from their leaders. The company also stated that it will assist laid-off employees in transitioning to new opportunities but did not specify how. Dell’s layoffs add to the more than 48,000 jobs cut by tech companies this year, including Microsoft, Google, and Salesforce.
The sources for this piece include articles in ITWorldCanada and TheRegister.
