It quoted Dell’s
Co-Chief Operating Officer Jeff Clarke saying that the company is experiencing
market conditions that “continue to erode with an uncertain future".
Dell’s headcount will be the lowest in 6 years after the
layoffs are complete. The layoffs come amid the ongoing challenges in the
personal computer industry. In a memo to staff, Clarke said, “We’ve navigated
economic downturns before and we’ve emerged stronger. We will be ready when the
market rebounds."
According to preliminary data from industry analyst IDC,
personal computer shipments dropped sharply in the fourth quarter of 2022. Dell
saw the largest decline — 37 per cent compared with the same period in 2021.
Dell generates about 55 per cent of its revenue from personal computers (PCs).
In 2020 also, Dell had announced a similar layoff when the
Covid pandemic had hit.
With the latest layoff, Dell has become to latest company to
let go of employees. Before this, Twitter, Google, Microsoft, Meta and Amazon,
amonng others, have laid off thousands of employees.
In November, HP also had said that it will cut 6,000 jobs
over the next three years amid declining demand for personal computers that has
cut into profits. Apart from this, Cisco Systems Inc and International Business
Machines Corp have also said they will let go of about 4,000 workers.
According to consulting firm Challenger, Gray &
Christmas Inc, the tech sector announced 97,171 job cuts in 2022, which is 649
per cent higher as compared with the previous year.
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