The tech industry is in distress, as declining PC sales and the threat of a recession forced companies to lay off workers. Dell is the most recent company to join this trend, announcing plans to lay off 6,650 employees in the coming months, representing about 5% of the company’s global workforce. Dell’s global workforce is expected to be reduced from 126,300 to 120,650.
The industry has been affected by dropping PC sales, with global PC shipments falling 28% in the fourth quarter of 2022 compared to the same period in 2021. The decrease in shipments has been linked to decreased demand for desktops, laptops, and workstations, which fell to 67.2 million units in the third quarter.
Dell’s layoffs are comparable with other tech companies such as Google, Spotify, and Microsoft. In a memo to employees, Dell’s Vice Chairman and Co-Chief Operating Officer, Jeff Clarke, stated that market conditions are deteriorating and the outlook is uncertain. He continued by stating that while laying off employees was tough, it was important for the company’s long-term growth and success.
Dell will restructure its Regional Sales and Technologies Select teams to report to a single leader to streamline operations. The company will also change the Infrastructure Solutions Group and Client Solutions Group to reduce customer service costs.