(Dell's Head Office - Source: Wikipedia )
A regulatory document released by the company on Monday says that Dell plans to lay off about 5% of its employees because of the uncertain economy.
CNN was informed by Dell that the corporation employs about 133,000 people. There would be about 6,500 job losses at such a level, or 5% of the workforce.
The layoffs were announced by the IT giant due to the "challenging global economic climate." In a letter to employees, Jeff Clarke, who is the vice chairman of Dell, said that the steps the company has taken so far, like limiting employee travel and stopping external hiring, are not enough.
"What we know is that market circumstances continue to degrade with an unclear future," Clarke said to the staff. After many consecutive solid quarters, "the efforts we've taken to keep ahead of downturn implications are no longer adequate." Now, we need to make some more choices in order to be ready for what lies ahead.
This action is a response to the many layoffs that have plagued the IT sector recently. As companies try to adjust to changes in global demand and fears of an upcoming recession, many of them, like Amazon, Microsoft, and Google, have said they will lay off thousands of workers.
A decline in PC sales has been a problem for Dell as well.
Last month, research company Gartner said that, compared to the same quarter in 2022, PC sales throughout the globe dropped by more than 28% in the fourth quarter of 2022. Since Gartner began keeping track of the PC industry in the mid-1990s, this was the biggest drop in shipments in a single quarter that had ever been recorded.
For Dell in particular, Gartner reports that PC vendor unit sales dropped 37% in the fourth quarter of 2022 compared to the same period the year before.
(Based on: The-CNN-Wire
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