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PC giant Dell will cut 6,650 jobs as sales continue to fall

Dell has revealed plans to slash 6,650 jobs, joining a flurry of tech companies to terminate employees.

The Round Rock-based company is making the cuts because of a slow in demand for personal computers.

In a memo to staff, Co-CEO Jeff Clarke said the market conditions “continue to erode with an uncertain future.”

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The cuts represent around five percent of its headcount.

Like other technology businesses, Dell suffered plummeting demand after a pandemic-era PC boom.

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Industry analyst IDC notes that preliminary data finds PC shipments decline dramatically in the fourth quarter of 2022. 

Dell saw the steepest drop among major companies, with a 37 percent fall compared to the same period in 2021.

The business generates more than half of its revenue from personal computers.

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Mr. Clarke informed staff that previous cost-cutting measures, like a hiring freeze and travel restrictions, are no longer enough.

The company sees department reorganizations and job cuts as opportunities to improve efficiency.

In recent months, the tech industry has been hit hard by staff cuts, including many of Dell's rivals.

Another leading PC maker HP announced 6,000 job losses in November.

Cisco and IBM have let go of employees in the previous months.

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Consulting firm Challenger, Gray & Christmas said the tech sector reported 97,171 cutbacks in 2022, a 649 percent rise compared to the previous year.

Dell's workforce will be the lowest in at least six years after the downsizing, with 39,000 fewer people than in January 2020.

A March 2022 filing said about one-third of the company's employees are based in the US.

The company is likely to disclose more details on the financial impact of the layoffs when it reports fiscal fourth-quarter results on March 2.

Source: Bloomberg

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