Dell to lay off over 6,600 employees
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The American corporation Dell announced the dismissal of 6650 of its employees, this is 5% of its total staff, transmits Bloomberg.
The decision to cut comes amid falling demand for PCs and economic uncertainty amid deteriorating market conditions, Chief Operating Officer Jeff Clark explained in a letter to employees.
At the same time, steps already taken, including suspending external recruitment, restricting travel and cutting spending on external services, have proven “already insufficient”. At the end of January, Dell had about 133,000 employees, of whom only a third were based in the US.
According to Bloomberg, PC demand dropped sharply in Q4 2022. Dell, which generates about 55% of PC sales, recorded a 37% drop in shipments.
Similar measures were taken by Dell’s competitors, such as HP, which cut 6,000 employees in November 2022. Cisco Systems Inc. and IBM laid off 4,000 each. The tech sector announced 97,171 job cuts in 2022, according to Bloomberg consulting firm Challenger, Gray & Christmas. This is 649% more than a year earlier.
Earlier in January Microsoft announced about plans to lay off 10,000 employees (less than 5% of the state) by the end of the third quarter of fiscal year 2023. The company’s CEO Satya Nadella stressed that hiring in “key strategic areas” will continue and laid-off employees will be supported. In particular, they will be provided with benefits and benefits, medical insurance, which will be valid for six months after the reduction, as well as assistance in the transition to a new job.
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