Dell Technologies announced on Monday that it plans to cut approximately 5% of its workforce, or 6,650 jobs, due to a challenging global economic environment. The cuts come as PC and laptop demand has slowed globally, with Dell experiencing a 37% decline in shipments in the fourth quarter of 2022, according to data from industry analyst IDC.
In a memo to employees, Jeff Clarke, co-chief operating officer at Dell, said the cuts are necessary to “stay ahead of downturn impacts.” He added that the measures Dell had already implemented, such as restrictions on employee travel and a pause on external hiring, were no longer sufficient.
In addition, Dell is reorganizing its sales, customer-support, product-development and engineering teams. The company is also making changes to the global sales organization, where it will align regional sales and Dell Technologies Select teams to cover customer and partner relationships worldwide. Support teams will be reorganized into similar structures.
Dell's cuts add to the growing list of technology companies that have been forced to make similar decisions due to the economic impact of the pandemic. Other companies that have laid off employees include Google, Amazon, Meta, Twitter, Intel, Microsoft, Salesforce, PayPal and HubSpot.
Dell is taking steps to provide support to those affected by the job cuts. “This is a difficult decision that was not made lightly, and we’ll support those impacted as they transition to their next opportunity,” Clarke wrote. We will be successful like we always have been, for our clients, associates, and ourselves. Our competitiveness, focus, and operational performance will be taken to a new level. When the market rebounds, we will be prepared.
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