Dell reportedly fires 6,650 employees in latest job cuts

Dell Technologies on Monday reportedly said that it will lay off about 6,650 workers globally, becoming the latest technology company to do so. The cuts will include 5 percent of the company’s global workforce, reported Bloomberg, citing sources.

“The company is experiencing market conditions that continue to erode with an uncertain future,” Co-Chief Operating Officer Jeff Clarke, was quoted as saying. Clarke told employees that previous cost-cutting measures, such as a halt in hiring and travel restrictions, are no longer sufficient.

In addition, the company’s spokesperson said that the department reorganisations, along with the job reductions, are viewed as an opportunity to drive efficiency, according to the report. Moreover, Dell and other hardware manufacturers have seen a drop in demand following a pandemic-era PC boom.

In 2022, the Indian traditional PC market declined by 11.7 per cent year-over-year (year-over-year) with a shipment of 3.9 million units in the September quarter after eight consecutive quarters of growth, according to the International Data Corporation (IDC) report. According to Gartner, the demand for devices in 2023 will plummet further and the worst-hit sector would be the PC and laptops industry.

HP shipped over 9,40,000 units, and Lenovo overtook Dell for the second position with a strong showing in the consumer segment. Dell Technologies slipped to the third position as it lost momentum in the consumer segment.

The latest round of job cuts at Dell comes days after several tech companies marginalised their workforce to become leaner and more disciplined for the ongoing economic downturn. The global recession has caused major companies such as Microsoft, Alphabet (Google’s parent), Meta, Amazon, and Snap, among others to slash jobs across departments. Indian firms such as Swiggy and Zomato have also reduced their workforce significantly to be able to absorb the perilous market conditions.

— Written with inputs from IANS