Dell plans to lay off roughly 5% of its workforce, the company said in a regulatory filing Monday, in the latest example of tech companies cutting costs in an uncertain economic climate.
As of January 2022, Dell said it had 133,000 employees. At that level, the 5% cut would represent more than 6,500 employees.
The computing giant cited the “challenging global economic environment” for the cuts. In a letter to employees, Jeff Clarke, Dell’s vice chairman, said steps the company has already taken — such as restrictions on employee travel and a pause on external hiring — are insufficient.
“What we know is market conditions continue to erode with an uncertain future,” Clarke told employees.
“The steps we’ve taken to stay ahead of downturn impacts – which enabled several strong quarters in a row – are no longer enough. We now have to make additional decisions to prepare for the road ahead.”The move comes as layoffs continue to spread throughout the tech industry. Amazon, Microsoft, Google and others have each announced plans to cut thousands of workers as the companies adapt to shifting pandemic demand and fears of a looming recession.
Dell has also been grappling with reduced demand for personal computers.
Consulting firm Gartner said last month that worldwide PC shipments fell more than 28% in the fourth quarter of 2022 compared to the same period the prior year. This marked the largest quarterly shipment decline since Gartner began tracking the PC market in the mid-90s.
Dell, in particular, saw a 37% decline in PC vendor unit shipments during the final three months of 2022 compared to the year prior, according to Gartner. (CNN)