Dell will layoff 6,650 employers in the next few months
The recent wave of layoffs has swept across the entire technology industry in the United States. Due to the plummeting sales of PCs, some companies have shut down due to the imminent economic recession, and Dell, one of the major OEMs, is not immune. According to Bloomberg, Dell will lay off 6,650 people in the next few months, accounting for about 5% of its global workforce.
Dell’s global workforce, which peaked at 165,000 over the past six years, dropped to 126,300 in 2020 following a series of cuts. Dell Vice Chairman and Co-COO Jeff Clark wrote in a memo to employees: Dell is experiencing market conditions that “continue to erode with an uncertain future.”
Dell will streamline its operations, including realigning regional sales and technology teams to improve cost efficiency, while also restructuring its divisions to reduce customer service costs. Jeff Clark admits that this is a difficult decision, but one that must be made for the long-term health and success of the future business.
In the fourth quarter of 2022, global PC shipments fell off a cliff, falling to 67.2 million units, a year-on-year decrease of 28.1%. Among the top five vendors, Dell saw the largest decline, with shipments dropping 37.2% year-on-year to 10.8 million units. Competitor HP made the decision to cut jobs earlier, cutting 6,000 jobs in November last year. It is understood that this action by Dell can reduce expenses by $700 million to $1 billion per year, help maintain profit margins and reduce the impact on EPS.