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Dell Announces Layoffs

Dell Announces Layoffs

Dell, an American computer company, announced Monday that it will lay off 5% of its global workforce, or approximately 6,650 employees, becoming the latest casualty of the US tech sector’s job-cutting wave.

Similar steps have been taken by tech titans Microsoft, Facebook owner Meta, Google-parent Alphabet, Amazon, and Twitter as the industry braces for an economic downturn.

They also follow a major hiring spree during the height of the coronavirus pandemic, when businesses scrambled to meet demand as people turned to the internet for work, school, and entertainment.

However, “market conditions continue to deteriorate with an uncertain future,” according to a memo released Monday by Dell Technologies vice chairman Jeff Clarke.

“The steps we’ve taken to stay ahead of downturn impacts, which enabled several strong quarters in a row,” he added, are no longer sufficient.

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Dell, headquartered in Round Rock, Texas, had 133,000 employees at the beginning of last year, with nearly a third of them based in the United States.

Clarke stated on Monday that the company must now make “additional decisions to prepare for the road ahead.”

He foreshadowed upcoming changes for the company’s global sales and services segments, saying that “unfortunately, with changes like this, some members of our team will be leaving the company.”

“There is no more difficult decision than the one we had to make for our long-term health and success,” he added.

According to results released in late November, Dell’s revenue fell 6% in the third quarter of its fiscal year 2023.

Product sales of desktops, laptops, and workstations, which account for the majority of the group’s revenue, fell by 10%.

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The executives of the group cited a drop in demand for personal computers as people in the United States and around the world deal with high inflation and rising interest rates.

However, Clarke emphasized in the memo that the company has previously navigated economic downturns and “emerged stronger” from them.

He went on to say that Dell will be “ready when the market recovers.”

According to the specialist site Layoffs. fyi, over 88,000 tech employees have been laid off worldwide since the beginning of January, not including Dell’s announcement on Monday.