Dell Cuts 6,600 Jobs as PC Sales Drop

Dell is watch over in thefootsteps of the wide technical school industryand is pose off around 6,600 positions . The ship’s company is citing areduced demand for microcomputer — as well as the thriftiness — for the determination .

According to Bloomberg , the cuts will amount to about 5 % of the company ’s hands . Likewise , the society ’s manpower will be reduce to some 126,000 planetary employee , which would be its last since 2017 . accord to Dell co - CEO Jeff Clarke , the companionship tried alternate measures , like a rent freeze and limit on locomote , before deciding to make employee cuts .

“ We ’ve voyage economical downturns before and we ’ve emerged stronger , ” Clarke drop a line to Dell employee according to a company voice as reported by Bloomberg . “ We will be ready when the market resile . ”

The layoffs will impact approximately 5% of the company’s global workforce.

The layoffs will impact approximately 5% of the company’s global workforce.Image: Brandon Bell (Getty Images)

A spokesperson from Dell tell Gizmodo in an email :

Dell ceaselessly assess our business to ensure we ’re set up to deliver the best innovation , time value and service to our customers and partners . This is specially important as economic incertitude has continue . Since June , we paused outside hiring and reduced outgo to voyage a challenging global environment . We have further chance to drive efficiency through department shakeup , which has resulted in a reduction of squad member across the globe . This is a hard determination that was not made gently , and we ’ll stand those touch as they transition to their next opportunity .

Texas - found Dell has been face economic pressures like the remainder of the tech diligence , but its struggles are compound since the fellowship distribute in the first place in ironware sales . personal computer and accessory sales boomed during the height of the covid-19 pandemic as most were relegated to work on from home base , but the pandemic - fueled growth obviously could n’t last . As such , PC sales have plateaued and Dell is feeling the heat .

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Dell competitorHP announced plansto lie off employees in November , citing similar circumstances . HP ’s fiscal yr meshing revenue for 2022 fall 0.8 % yr - over - year . Intelhas also made moves to assay and cut costs by cut the earnings of certain higher level employee . The society cut back Principal Engineer wage 5 % , VP salaries 10 % , executive leadership salaries 15 % and the CEO ’s salary 25 % .

The technical school industry , both legacy companies like Dell and companies likeGoogle , has been pulling the induction onlaying off employeesin late months citing some interpretation of “ the economy . ” As these companies search to cash in in on pandemic - fueled ontogeny , which would inevitably point off briefly after 2020 , employees are now paying the price .

Update February 6 10:25 a.m. EST : This article was updated to include comment from Dell .

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