Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Dell, one of the largest computer makers in the world, intends to cut 6,650 jobs, which is 5% of the total number of employees. It is reported by Bloomberg. The cuts come amid a sharp decline in demand for personal computers and laptops following a surge in sales during the COVID-19 pandemic.
Cuts in the official letter were announced by the operating officer of Dell Jeff Clarke (Jeff Clarke). The company’s previous cost-cutting measures, such as suspending hiring and limiting travel, have not been enough to address market conditions that “continue to worsen with an uncertain future,” he said.
IDC reports that in the last pre-Christmas quarter, shipments of Dell computers decreased by 37% compared to the same period last year. At the same time, about 55% of Dell’s income comes from PC sales. Jeff Clark said the job cuts are essential to the company’s long-term health and success and will provide an opportunity to increase efficiency and spur innovation. After layoffs, the number of Dell employees worldwide will be the lowest in six years.
Dell isn’t the only computer maker to face falling demand for hardware. It’s safe to say that the entire tech industry has been hit hard by the economic downturn, over-hiring, and supply chain issues.
