Dell To Cut Nearly 6,600 Jobs

It will let go of thousands of employees…

Dell Technologies Inc. will eliminate about 6,650 jobs, becoming the latest technology company to announce it will let thousands of employees leave the office.

The company is now experiencing market conditions that "continue to erode with no bright future," Co-Chief Operating Officer Jeff Clarke wrote in a memo viewed by Bloomberg.

The reductions amount to about 5% of Dell's global workforce, according to a company spokesperson.

After a pandemic-era PC boom, Dell and other hardware makers have seen cratering demand. Industry analyst IDC said preliminary data show personal computer shipments dropped sharply in the fourth quarter last year.

Among major companies, Dell saw the largest decline at 37% compared with the same period in 2021, according to IDC. Dell generates about 55% of its revenue from PCs.

Clarke told workers that previous cost-cutting measures, including a pause on hiring and limits on travel, are no longer enough. The department reorganizations, along with the job reductions, are viewed as an opportunity to drive efficiency, the spokesperson said.

Layoffs have hammered the technology sector in recent months, including many of Dell's peers and competitors.

HP Inc., similarly exposed to the PC market, announced in November a reduction of as many as 6,000 workers. Cisco Systems Inc. and International Business Machines Corp.

Each said they would eliminate about 4,000 workers. The tech sector announced 97,171 job cuts in 2022, up 649% compared to 2023, according to consulting firm Challenger, Gray & Christmas Inc.