Dell announced today that it would lay off 5% of its global workforce due to falling PC sales and general economic uncertainty. That equates to 6,650 people losing their jobs.
According to Bloomberg data, the company peaked at 165,000 employees in January 2020 and has been reducing its headcount since then. It had fallen to 133,000 before today’s announcement and is expected to fall to 126,350 after today’s cuts.
Employees were informed via email from Dell co-CEO and vice chairman Jeff Clarke, along with the usual platitudes. Clarke described the move as an unintended consequence of the current economic climate.
“Unfortunately, with changes like this, some members of our team will be leaving the company. There is no tougher decision, but one we had to make for our long-term health and success. Please know we’ll support those impacted as they transition to their next opportunities,” he wrote.
He also said, “The opportunities ahead of us are immense. The amount of data continues to explode. Our innovation is powering progress across the globe. And our customers are turning to us as their trusted partner. I’ve never been more confident in our future and our team.” That’s probably of little solace to the folks who are getting layoff notices today.
The company just finished a quarter in which revenue fell 6% to $25 billion.
According to IDC, Canalys, and Gartner data, PC sales fell for the fourth consecutive quarter, with Dell suffering the largest percentage loss, -37%, of any of the largest PC manufacturers. However, Dell is more than just its PC division. It also has a strong enterprise division.
Dell made headlines in 2015 when it paid $67 billion (later valued at $58 billion) for EMC, the largest tech deal in history at the time. The transaction resulted in significant debt for the company, which it is still attempting to repay.
Still, it’s difficult to ignore such large numbers when compared to laying off workers to save money. This news comes after more than 80,000 workers were laid off at other major tech companies last month, and we may not be done yet.
