14 DAY TRIAL // Dell has become the latest big name that announces massive layoffs, with the company deciding to let go some 5 percent of its global workforce due to the economic downturn happening worldwide.
The PC market has collapsed, and Dell was one of the companies most affected by this change in trends. After a boom recorded in 2020 when the world started working remotely and PCs became a must-have, the market gradually collapsed.
In the fourth quarter of 2022, Dell’s PC sales went down no more, no less than 37.2 percent versus Q4 2021, while its yearly sales fell 16.1 percent. The company sold 49.8 million computers last year, down from 59.3 million units the year before.
Leader Lenovo sold 68 million units in 2022, according to IDC.
Bloomberg says Dell will cut 6,650 jobs, which represents approximately 5 percent of the current workforce the company has over the world.
Company Co-Chief Operating Officer Jeff Clarke also announced the layoffs in a message posted on the corporate site.
“In the coming days and weeks, you’ll begin to see a series of changes – some resets – across the organization to better structure us for the future, to better collaborate, reduce complexity, increase speed and to accelerate innovation. They’ll help us focus on purpose-driven work and be in the best position to make the greatest difference for customers, Dell Technologies and each other. You’ll hear from your leader soon about any changes that may impact your team,” he said without disclosing any numbers.
“Unfortunately, with changes like this, some members of our team will be leaving the company. There is no tougher decision, but one we had to make for our long-term health and success. Please know we’ll support those impacted as they transition to their next opportunities.”
Dell is currently the world's third largest PC maker, according to IDC data.