Dell Announces Layoffs to Stay Ahead of Downturn Impacts
By 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.[0] 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.[1]
In a memo to employees, Jeff Clarke, co-chief operating officer at Dell, said the cuts are necessary to “stay ahead of downturn impacts.”[2] 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.[2]
In addition, Dell is reorganizing its sales, customer-support, product-development and engineering teams.[3] 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.[4] Support teams will be reorganized into similar structures.[4]
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.[5] Other companies that have laid off employees include Google, Amazon, Meta, Twitter, Intel, Microsoft, Salesforce, PayPal and HubSpot.[0]
Dell is taking steps to provide support to those affected by the job cuts.[5] “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.[6] We will be successful like we always have been, for our clients, associates, and ourselves.[4] Our competitiveness, focus, and operational performance will be taken to a new level.[4] When the market rebounds, we will be prepared.[3]
0. “Computer maker Dell lays off more than 6500 in latest wave of tech job cuts” Washington Examiner, 6 Feb. 2023, https://www.washingtonexaminer.com/policy/technology/computer-maker-dell-lays-off-6-500
1. “Dell to slash nearly 6650 jobs, COO cites uncertain market conditions” The News Minute, 6 Feb. 2023, https://www.thenewsminute.com/article/dell-slash-nearly-6650-jobs-coo-cites-uncertain-market-conditions-172923
2. “Dell to lay off 6,650 workers, or 5% of its workforce” CNBC, 6 Feb. 2023, https://www.cnbc.com/2023/02/06/dell-to-lay-off-6650-workers-or-5percent-of-its-workforce.html
3. “Dell to Cut 5% of Workforce – WSJ” The Wall Street Journal, 6 Feb. 2023, https://www.wsj.com/articles/dell-to-cut-5-of-workforce-11675688897
4. “Dell Technologies Cuts 6,650 Jobs, Remakes Support, ISG Teams” CRN, 6 Feb. 2023, https://www.crn.com/news/channel-news/dell-technologies-cuts-6-500-jobs-remakes-support-isg-teams
5. “Facing Plummeting Demand for PCs, Dell Decides to Cut 6650 Jobs” PCMag, 6 Feb. 2023, https://www.pcmag.com/news/facing-plummeting-demand-for-pcs-dell-decides-to-cut-6650-jobs
6. “More tech job market misery as Dell lays off 5% of worldwide workforce” Yahoo Life, 6 Feb. 2023, https://www.yahoo.com/lifestyle/more-tech-job-market-misery-141346282.html
