Cutting off its global workforce by about 5%, the number of Dell employees would become 39,000, reaching the lowest in the last six years.
Heaptalk, Jakarta — The layoff storm still haunts the technology company worldwide. As the latest declaration on this workforce reduction matter, the United States-based technology company Dell Technologies Inc announced to trim off about 6,650 employees.
According to Bloomberg, this layoff ruling comes from a memo written by the Co-Chief Operating Officer of Dell company, Jeff Clarke. As revealed in the message, this job-cutting decision represents 5% of its global workforce due to a plummeted Personal Computer (PC) demand amidst the turbulent global economy.
As an effect, the measures that have been implemented, spanning cost reduction, recruitment of employees, and travel limitations, are no longer sufficient to relieve the company’s finances. For this reason, the management team claimed the department reorganization and employee termination consideration were the right moves to boost the company’s efficiency.
“Unfortunately, with changes like this, some team members will leave the company. There is no tougher decision, but one we had to make for our long-term health and success. We will be ready when the market rebounds,” Clarke said, cited in cnbc.com
Dell recorded its sales decline of 6% in the period that ended on October 28th, 2022, and delivered a revenue forecast for the current quarter that fell short of analysts’ prediction, claiming that customers lessen their information technology purchasing. Performing the layoff move, the company intends to disclose the financial impact of this job cut when reporting its fiscal fourth-quarter results on March 2nd, 2023.
After running into the personal computer spike during the COVID-19 pandemic, PC product sales dropped significantly. According to the IDC report, among the other giant technology companies, Dell’s sales output has fallen to 37% on its Personal Computer product shipments in the fourth quarter of 2022, compared to the comparable period in 2021. Meanwhile, in terms of Dell’s revenue, Dell demonstrates an earning from its PC sales of about 55%.
On the other hand, Bloomberg reported that Dell Technologies’ share dwindled to 3.3% yesterday in New York, compared with a 0.7% decline in the tech-heavy Nasdaq 100 index.
As it is known, the number of layoff issues in the United States has reached the highest level in more than two years until January this year due to preparing to face the global recession forecast. In January 2020, Dell contained its talented employees of around 165,000 people. Nevertheless, after conducting a layoff resolution, Dell Technologies’ workforce would be noted at about 39,000, indicating the lowest in the last six years among other giant technology companies.
