Dell On Monday, it announced plans to furlough 5% of its workforce, or about 6,650 employees. SEC filing.
Dell’s cut is due to slowing global demand for PCs and laptops. Worldwide shipments of PCs are declining 28% YoY In the fourth quarter of 2022, Dell’s computer shipments fell 37% over the same period, according to industry analysts at IDC, while competitors Lenovo, HP, and apple decreased by 28%, 29% and 2% respectively.
Dell shares fell 2% early Tuesday.
and Note to employeeDell co-chief operating officer Jeff Clark said the cuts were made to “preempt the impact of the recession.” He said the changes Dell had already implemented, such as spending cuts, were no longer enough.
“Unfortunately, changes like this will result in several members of our team leaving the company,” Clark said. It’s a decision I had to make for
As of January 28, 2022, Dell had a total workforce of 133,000. company filing with the SEC.
In a memo to employees, Clark said Dell had weathered recessions before and was “stronger” as a result.
“We will be ready when the market recovers,” he wrote.
The company’s layoff announcement marks the latest job cuts in the tech industry, as PayPal announced plans to cut 2,000 jobs on Tuesday. Earlier this month, Google announced plans to lay off more than 12,000 of his employees, Microsoft announced plans to cut his 10,000 employees, and Salesforce laid off his 7,000 employees. announced the plan.