Dell wants to lay off about 6,650 employees, which is about 5% of all global employment, amid a slowdown in computer sales.
The reports follow news of other cost-cutting measures, including halting hiring and reducing travel, which have proven insufficient in the company’s quest to save cash.
According to reports, the co-director of Bloomberg (opens in a new tab)).
The last quarter of 2022 was a particularly worrying time for Dell, which saw a 37.2% decline in shipments of laptops and desktops. Other manufacturers saw less significant declines, with an overall average of 28.7%.
Despite the fact that only the second month of 2023 was only the second month, tens of thousands of technical workers have been made redundant this year, however, there may be light at the end of the tunnel.
One report suggested it might exist increase in global IT spending this yearwhile others pointed out that while layoffs of technical workers are becoming more common, the skills of these workers are still in high demand to the point that the overwhelming majority find re-employment relatively quickly.
Dell is not the only company facing challenges in 2023, with other big tech companies including Amazon, Microsoft and Salesforce cutting jobs by up to 10%. Reducing employment by 5% seems to be the norm for many companies in recent months.
IBM recently announced a more modest series of layoffs that saw it say goodbye to 1.5% of its workforce, which is still nearly 4,000 people.