FILE PHOTO: 3D printed clouds and figurines are seen in front of the Dell logo in this illustration taken February 8, 2022. REUTERS/Dado Ruvic/Illustration
NEW YORK: Dell Technologies Inc, facing plummeting demand for personal computers (PCs), will eliminate about 6,650 jobs, becoming the latest technology company to announce it will let thousands of employees go.
The company is experiencing market conditions that “continue to erode with an uncertain future,” co-chief operating officer Jeff Clarke wrote in a memo viewed by Bloomberg.
The reductions amount to about 5% of Dell’s global workforce, according to a company spokesperson.
After a pandemic-era PC boom, Dell and other hardware makers have seen cratering demand. Industry analyst IDC said preliminary data show PC shipments dropped sharply in the fourth quarter of 2022.
Among major companies, Dell saw the largest decline – 37% compared with the same period in 2021, according to IDC. Dell generates about 55% of its revenue from PCs.
Clarke told workers that previous cost-cutting measures, including a pause on hiring and limits on travel, are no longer enough. — Bloomberg
