It's the latest company to lay off thousands of employees. The computer maker announced today it is cutting 6,650 jobs, or 5% of its global workforce due to uncertainty surrounding the market's future. The company has been struggling for a few months due to a slump in the personal computer market caused by the global economic slowdown and a looming recession.
A hiring freeze and limits on travel were implemented by Dell as the company dealt with a post-pandemic collapse in PC sales, which account for more than half of its revenue.
Susannah Streeter, a markets analyst at Hargreaves Lansdown, said that it was only a matter of time before the wave of tech layoffs reached Dell's shores, given how sensitive the company is to both consumer and corporate confidence. Dell is joining a list of tech companies that have announced layoffs in recent weeks, including Autodesk, PayPal, and Salesforce. In January, Microsoft said it would lay off 10,000 jobs instead of the 11,000 reported by major news outlets. In addition to the layoff, the Redmond-based company said it would take a $1.2 billion charge as its cloud-computing customers dissect their spending and the company prepares for a potential recession. The layoff is larger than the 1,000 job cuts the company announced in October 2020.
With just four weeks into 2023, more than 292 tech companies have laid off 88138 tech workers, according to Layoffs. The data collected from public reports has been used to track tech layoffs, according to FYI.