Dell is seeking to lay off around 6,650 workers, a figure that accounts for around 5% of its entire global headcount, amid slowing computer sales.
The reports follow news of other cost-cutting measures, including a pause on hiring and limits on travel, which have proven to be insufficient in the company’s quest to save cash.
Dell Co-Chief Operating Officer, Jeff Clarke, is reported to have warned employees of conditions that “continue to erode with an uncertain future” (via Bloomberg (opens in new tab)).
Dell layoffs
The final quarter of 2022 was an especially troubling period for Dell, which saw a 37.2% decrease in laptop and desktop shipments. Other manufacturers saw less considerable dropoffs, with an overall average figure of 28.7%.
Despite barely being into the second month of 2023, we have seen tens of thousands of tech workers being made redundant this year, however there could be some light at the end of the tunnel.
One report has suggested there could be an increase in global IT spend this year, while others have indicated that while tech layoffs are becoming ever more widespread, these workers’ skills remain highly sought after to the point that an overwhelming majority are finding re-employment reasonably quickly.
Dell isn’t the only company facing challenges as we head into 2023, with other major tech companies including Amazon, Microsoft, and Salesforce all reducing their headcounts by as much as 10%. A 5% reduction in headcount has appeared to be the norm for many companies in recent months.
IBM recently announced a more modest series of layoffs that saw it say goodbye to 1.5% of its workforce, still accounting for almost 4,000 individuals.
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