Computer manufacturer Dell is set to cut about 6,650 jobs representing 5 percent of its global workforce, according to a report from Bloomberg. Announced in a memo on Monday, Dell Co-Chief Operating Officer Jeff Clarke said that the company’s previous cost-cutting measures, such as a pause on hiring and limitations on travel, have proved insufficient, and that the company is experiencing market conditions that “continue to erode with an uncertain future.”
The layoffs were announced in the face of falling demand for PCs and laptops. Following a surge in PC sales during the global covid pandemic, most major computing manufacturers are now seeing a sharp drop in demand. Industry analyst IDC reported a 37 percent decline in Dell’s computer shipments during its recent holiday quarter compared to the same three-month period the previous year. Bloomberg reports that 55 percent of Dell’s revenue is generated from PC sales.
After the layoffs, Dell will have 39,000 fewer global employees compared to its peak in January 2020.
Clarke said that the job cuts are essential for Dell’s “long-term health and success,” and department reorganizations are being viewed as an opportunity to drive efficiency and boost innovation. Following the layoffs, the number of global Dell employees will be at its lowest figure in six years according to Bloomberg, with around 39,000 fewer roles compared to the 165,000 full-time roles reported in January 2020. “We’ve navigated economic downturns before and we’ve emerged stronger,” said Clarke. “We will be ready when the market rebounds.”
Dell isn’t the only computing brand to be impacted by falling demand for hardware. Back in November, HP announced plans to cut around 6,000 jobs, while Lenovo laid off an undisclosed number of its US workforce in December 2022. The broader tech industry has also been impacted by a downturn in the economy as a result of slow growth, over-hiring, and supply chain issues, with Meta, Google, Microsoft, and Amazon all having announced mass layoffs in recent weeks.