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Dell is trying to lay off about 6,650 employees, a figure that accounts for about 5% of its total global workforce, amid slowing computer sales.
The reports follow news of other cost-cutting measures, including a hiring hiatus and restrictions on travel, which have proven insufficient in the company’s quest to save money.
Dell Co-Chief Operating Officer, Jeff Clarke, reportedly warned employees of conditions that “continue to erode with an uncertain future” (via Bloomberg (opens in new tab)).
Dell fired
The final quarter of 2022 was a particularly rough one for Dell, which saw a 37.2% decline in laptop and desktop shipments. Other manufacturers saw less significant drop-offs, with an overall average figure of 28.7%.
Despite barely entering the second month of 2023, we’ve seen tens of thousands of tech workers laid off this year, but there could be some light at the end of the tunnel.
One report has suggested there could be one increase in global IT spending this yearwhile others have indicated that while technical layoffs are becoming more common, the skills of these workers remain highly sought after to the point that an overwhelming majority find new employment fairly quickly.
Dell isn’t the only company facing challenges as we head into 2023, with other major tech companies including Amazon, Microsoft and Salesforce all cutting their workforce by as much as 10%. A 5% reduction in the workforce has proven to be the norm for many companies in recent months.
IBM recently announced a more modest series of layoffs, cutting 1.5% of its workforce, still nearly 4,000.