Dell, a leading technology company, has recently announced its plans to lay off 5% of its 133,000-strong workforce, equating to approximately 6,650 employees.
The layoffs come amid declining global demand for personal computers and laptops, which has led to a decrease in computer shipments, particularly for Dell.
In the fourth quarter of 2022, global PC shipments were down 28% YoY, while Dell saw a 37% decline in its computer shipments, as opposed to its competitors Lenovo, HP, and Apple, which saw drops of 28%, 29%, and 2%, respectively.
In a memo to its employees, Jeff Clarke, co-chief operating officer of Dell, stated that the layoffs were a result of their efforts to stay ahead of the downturn impacts in the market.
Clarke mentioned that previous cost-saving measures, such as limiting travel, pausing external hiring, and reducing outside services spending, were no longer sufficient. He also noted that the decision to lay off employees was a difficult one, but necessary for the long-term health and success of the company.
Clarke emphasized in his memo that Dell has navigated economic downturns in the past and has always emerged stronger. He reassured employees that the company will be ready to bounce back once the market recovers.