Dell lays off 6,000 employees due to a sharp decline in PC sales
According to a Bloomberg report, Dell plans to lay off 6,550 employees. This number actually constitutes five percent of the total workforce of the mentioned company. Jeff ClarkeThe CEO of Dell announced by publishing a note that the company’s previous actions such as stopping the hiring of new workers and limiting business trips were not enough.
Dell’s reason for firing thousands of employees is the decrease in demand for personal computers and laptops. After the dramatic increase in the sales of these products during the Corona epidemic, now most of the big manufacturers of personal computers are facing a sharp decrease in demand. The analytical company IDC says that the sales of Dell brand personal computers in the last quarter of 2022 have decreased by about 37% compared to the fourth quarter of the previous year. On the other hand, 55% of Dell’s total income comes from the sale of these products.
Clark It says the layoffs are essential to Dell’s long-term health and success, and the reorganization of various departments is seen as an opportunity to increase efficiency and foster innovation. Verge It has been reported that the number of global employees of Dell will reach its lowest level in the last 6 years after the collective dismissal of 5% of the company’s workforce. In comparison, the total number of employees of this company in January 2020 was about 165 thousand people.
Of course, Dell is not the only company that has been affected by the decrease in demand for personal computers. HP announced in November that it would lay off 6,000 employees. Meanwhile, Lenovo laid off an unspecified number of employees in the United States in December 2022. Over the past few months, issues such as declining demand, supply chain issues and more have caused even the biggest tech companies, including Meta, Google, Microsoft and Amazon, to lay off thousands of employees.