Dell to slash over 6,500 employees, cut 5% of its global workforce jobs as PC sales decline

U.S. computer maker Dell Technologies plans to cut about 6,650 jobs, or 5 percent of its global workforce, amid slowing PC sales, a report mentioned.

The company faces market conditions that "continue to deteriorate with an uncertain future," Jeff Clarke, co-COO of Dell Technologies, said in a memo to employees. Previous cost-cutting measures such as a hiring freeze and travel restrictions have not been enough, Clarke added. PC demand fell after a pandemic-induced boom, with shipments falling sharply in Q42022, according to industry analyst IDC.

Dell PC shipments saw their biggest year-over-year drop of 37 percent in the same period, according to IDC. Almost 55 percent of Dell's revenue is connected to the sale of computers. The company-wide restructuring and job cuts are seen as an opportunity to increase efficiency, according to a Dell spokesperson.

The reported layoffs are expected to reduce the PC maker's workforce to its lowest level in six years. About one-third of Dell's employees are based in the US, the company said in a March 2022 filing. The company has emerged stronger from previous economic downturns, Clarke told employees, adding that the company will be "ready when the market rebounds." With the US and EU staring down a slowdown, funding has dried up and tech companies have found themselves straddling a bloated workforce better suited to the demand created by the pandemic. This led to layoffs across the technology sector. 

Earlier, few other PC companies that have cut jobs too namely  HP who laid off 6,000 employees, Cisco Systems announced it will cut 4,000 jobs, IBM announced 4,000 job cuts According to the consulting firm Challenger, Gray & Christmas, there will be a total of almost 97,171 job losses in the technology sector in 2022.