Dell says more job cuts could come soon
Dell has confirmed that it plans to continue cutting its workforce for the remainder of the fiscal year as the company continues to grapple with declining PC sales and a revised business plan.
A report from Bloomberg claims the company has confirmed it will implement “a continued reduction in our total workforce” through hiring restrictions, internal restructuring and other measures.
Efforts to boost margins come months after the company pressured hybrid workers to return to the office in a bid to boost productivity.
Dell plans more workforce cuts
The news comes after several major rounds of layoffs at the company, including 6,600 employees in early 2023 and another 6,000 employees in early 2024. A few months later, reports began circulating that Dell was considering laying off an additional 12,000 workers — a number that has not been substantiated.
Dell, known for its consumer and business PCs, is among the companies that have faced disappointing PC sales in the years following the pandemic.
According to Channels For the three months ending June 30, 2024, Dell’s market share fell 2.4% to 16%, putting it in third place behind HP and Lenovo. While global PC shipments showed signs of recovery in the second half of 2023, sales fell in 2024, with annual growth rates nearly flattening.
The upcoming end of support for Windows 10 will likely provide a temporary boost to revenue, but Dell is more focused on trends in artificial intelligence. The company hopes its high-end servers will drive revenue.
In the most recent quarter, the company managed to increase revenue by 9% to $25.0 billion, despite its Client Solutions Group business (responsible for laptops and desktops) reporting a 4% decline in revenue to $12.4 billion.
Dell said: “We remain committed to disciplined cost management in coordination with our ongoing business transformation initiatives and will continue to take certain actions to reduce costs.”
Ny Breaking asked the company for more information about its plans to reduce its workforce, but we have not received a response.