ALBAWABA — In the latest blow to the United States technology sector Dell Technologies Inc. will axe around 6,650 employees as demand for personal computers keeps plummeting due to global economic pressures.
After a pandemic-era PC boom, Dell and other hardware makers have seen lower demand as life goes back to normal, putting pressure on the company since it generates about 55 percent of its revenue from PC sales.
“We’ve navigated economic downturns before and we’ve emerged stronger,” Co-Chief Operating Officer Jeff Clarke wrote in a memo to Dell employees. “We will be ready when the market rebounds.”
The company is experiencing market conditions that “continue to erode with an uncertain future,” Clarke added.
The reductions amount to about 5 percent of Dell’s global workforce, according to a company spokesperson.
“Dell continuously assesses our business to ensure we’re set up to deliver the best innovation, value and service to our customers and partners. This is especially important as economic uncertainty has continued. Since June, we paused external hiring and reduced spending to navigate a challenging global environment.
“We have further opportunity to drive efficiency through department reorganizations, which has resulted in a reduction of team members across the globe. This is a difficult decision that was not made lightly, and we’ll support those impacted as they transition to their next opportunity,” a Dell spokesperson told Gizmodo.
According to Industry analyst IDC, preliminary data shows PC shipments dropped sharply in the fourth quarter of 2022, with Dell seeing the largest decline of 37 percent, compared with the same period in 2021.
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