Dell Technologies to lay off 6,650 staffers
In addition to the downsizing, the company would introduce a slew of changes that include changing the structure of its sales team and integrating the services division of its consumer and infrastructure businesses.
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Dell Technologies is laying off 6,650 workers, about 5% of its total workforce, due to declining PC sales and infrastructure requirements.
The company has already tried to cut costs by pausing hiring and limiting travel before taking the decision to downsize its workforce, Co-Chief Operating Officer Jeff Clarke wrote in a blog post.
“Unfortunately, with changes like this, some members of our team will be leaving the company. There is no tougher decision, but one we had to make for our long-term health and success,” Clark wrote.
In addition to the downsizing, Clarke said the company would introduce a slew of changes that include changing the structure of its sales team and integrating the services division of its consumer and infrastructure businesses.
“This will impact about 5 percent of our global workforce,” a Dell spokesperson said in an email. “We have further opportunity to drive efficiency through department reorganizations, which has resulted in a reduction of team members across the globe. This is a difficult decision that was not made lightly, and we’ll support those impacted as they transition to their next opportunity.”
The news was first reported by Bloomberg.
Global PC sales for the quarter ending September declined by 15% year-over-year, while again declining by 28.1% for the quarter ending December, according to IDC.
Market research firm Gartner predicts that PC shipments will further decline by 7% in 2023.
Dell Technologies reported a 29% decrease in consumer revenue for the third quarter ending September, and a 6% year-over-year decrease in net revenue.
However, Dell Technologies is not the only technology company struggling with the decline in PC sales. In November, competitor HP was forced to announce plans to lay off 4,000 to 6,000 employees by the end of fiscal year 2025, reducing its global workforce by about 12%.
HP’s fourth quarter 2022 financial results showed a year-on-year revenue decline of 11.2% to $14.8 billion, with its personal systems, consumer, and commercial segments, as well as the notebook and desktop units reporting a decline in sales.
Large technology companies including the likes of Cisco, IBM, Meta, Amazon, Oracle, Google and Salesforce have continued to lay off employees since August last year.
So far in 2023, technology companies have laid off more employees than in any other month since the start of the COVID-19 pandemic.
2023-02-07 03:00:04 Dell Technologies to lay off 6,650 staffers
Post from www.computerworld.com
Dell Technologies Inc. announced it will eliminate 6,650 jobs, the latest in a series of layoffs the multinational technology corporation has made since the pandemic began.
The job losses are part of Dell’s strategy to streamline operations, the company said in a statement, and it has estimated it will save an estimated $2 billion as a result of its workforce reduction plan.
“This will have an effect on us all, as these decisions impact people who have made important and positive contributions to Dell,” CEO and Chairman Michael Dell wrote in an email to employees. “Having to make a decision that affects our team members around the world is the most difficult one we’ll ever make.”
The job losses largely affect people in sales, finance and IT roles, with about 4,600 of the layoffs taking place in the United States. Dell said the workers affected by the layoffs will get severance and job training assistance.
The Austin, Texas-based company was already struggling with declining revenue and profits before the coronavirus pandemic hit, as it had shifted focus to selling corporate hardware and services, rather than its traditional business of selling PCs. The breakdown of sales illustrated the company’s struggles, with hardware sales dropping 14 percent during the first quarter and technology solutions and services sales dropping 12 percent.
The company is hoping that its cost reduction plans will help it stay competitive in a market that is increasingly dominated by companies like Amazon, Microsoft and Google. In addition to the workforce reductions, Dell is also selling off its non-core businesses, such as its software and security services and also reported that it may divest its RSA cyber security business.
Though layoffs have become commonplace as companies look to cut costs, Dell’s job losses add to a worrying trend of companies cutting positions. The recent job cuts come on the heels of more than 11,000 layoffs by IBM and more than 8,000 by Oracle.