Amounting for 5% of the company’s total workforce, the 6500+ employees are being fired from different areas of Dell’s global infrastructure
Dell Technologies, one of the world’s leading PC (Personal Computer) suppliers just announced that it is laying off around 6500 employees from its global workforce. With this announcement, the company became one of the many tech companies that gave in to the decreasing tech demand and fired a major chunk of its workforce.
According to Bloomberg, the 6500+ employees being fired amount to almost 5% of Dell’s 158,000+ workforce.
Announcing the layoff plans on Monday, Dell’s Co-Chief Operating Officer Jeff Clarke said that “the company is experiencing market conditions that continue to erode with an uncertain future.”
Dell since last year has been experiencing a huge decrease in market demand for PCs and laptops. Well, not just Dell, but almost every other hardware manufacturer has been suffering losses ever since the COVID-19 boom took a stop.
Back in 2020, demands for laptops and PC’s soared as people started working and taking classes online. What these companies did not realize is the fact that this demand is temporary and went on to over hire.
This similar trajectory of over hiring during the pandemic and then firing thousands the year after it was noticed in almost all companies that are a part of the 2022-23 tech layoffs.
The Indian traditional PC market declined by almost 11.7 per cent year-over-year in 2022. Dell, which is also one of the most used PC brands in the Indian market noticed a decline in sales and other competitive brands such as Lenovo and HP took over as the leading brands.
According to the company leadership, Dell plans on reorganizing the structure of its organization as the layoffs go forward and sees them as an opportunity for increasing efficiency.