Dell is Cutting 6,650 Jobs Amid Falling Demand for PCs
upstart writes:
Dell is cutting 6,650 jobs amid falling demand for PCs:
Computer manufacturer Dell is set to cut about 6,650 jobs representing 5 percent of its global workforce, according to a report from Bloomberg. Announced in a memo on Monday, Dell Co-Chief Operating Officer Jeff Clarke said that the company's previous cost-cutting measures, such as a pause on hiring and limitations on travel, have proved insufficient, and that the company is experiencing market conditions that "continue to erode with an uncertain future."
The layoffs were announced in the face of falling demand for PCs and laptops. Following a surge in PC sales during the global covid pandemic, most major computing manufacturers are now seeing a sharp drop in demand. Industry analyst IDC reported a 37 percent decline in Dell's computer shipments during its recent holiday quarter compared to the same three-month period the previous year. Bloomberg reports that 55 percent of Dell's revenue is generated from PC sales.
After the layoffs, Dell will have 39,000 fewer global employees compared to its peak in January 2020.
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