Dell reducing its workforce, over 6,000 employees affected by the layoffs

Dell technology company announced its plan for a major layoff which will affect five percent of its total workforce. As the company stated in its recent filing at the Securities and Exchange Commission, this is equivalent to around 6,650 employees.

Dell said the plan for job cuts came up as the global demand for personal computers and laptops has slowed down. The International Data Corporation (IDC), a consumer market analyst, said that shipment of orders went down 28% year over year in the fourth quarter of 2022.

In the case of Dell, CNBC reported that its shipments plunged 37% in the same period. Its rivals, such as Apple, HP, and Lenovo, also experienced a slowdown, but their records were slightly better with just 2%, 29%, and 28%, respectively, shipment reduction rates.

It was Dell’s co-chief operating officer, Jeff Clarke, who broke the news of job cuts through a company memo to employees. He told everyone that this a step that they must take in an effort to “stay ahead of downturn impacts.”

Aside from the layoffs, Clarke revealed they had already implemented other measures as well, such as limiting travel, minimizing service spending outside of the company, and halting all external hiring. In any case, Dell had a total of 133,000 employees as of Jan. 28, 2022, and a small percentage which is about five percent is set to be cut soon.

“Unfortunately, with changes like this, some members of our team will be leaving the company,” the Dell co-CEO stated in the memo. “There is no tougher decision, but one we had to make for our long-term health and success. We will be ready when the market rebounds.”

Finally, CNN Business noted that Dell’s move to terminate some of its workers comes at a time when other major tech companies, including Amazon, Google, and Microsoft, have also done the same thing to cut costs and stay in business.

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