US tech giant Dell to cut 5% of global workforce

US company Dell says it will lay off about 5% of its global workforce, warning of uncertainty ahead

American company Dell said it would lay off about 5% of its global workforce, warning of uncertainty ahead.

American computer company Dell said on Monday that it would lay off about 5% of its global workforce, or about 6,650 employees, the latest casualty of a wave of job cuts to hit the tech sector. America.

The cuts follow similar steps by tech giant Microsoft, owner of Facebook, Meta, parent company of Google, Amazon and Twitter as the industry supports the economic depression.

They also come after a massive hiring spree at the height of the coronavirus pandemic as companies scramble to fill demand as people go online to work, study and play.

But “market conditions continue to erode with a uncertain futureDell Technologies vice president Jeff Clarke said in a memo released Monday.

“The steps we’ve taken to weather the effects of the recession – which have produced several consecutive quarters of growth – are no longer sufficient,” he added.

Dell, which is headquartered in Round Rock, Texas, had 133,000 employees at the beginning of last year with nearly a third of them in the United States.

On Monday, Clarke said the company must now make “additional decisions to prepare for the road ahead.”

He warned of upcoming changes for the company global sales and services segments, adding that “unfortunately, with changes like these, some of our team members are leaving the company.”

“There is no harder decision, but we have to make it for our health and long-term success,” he added.

Dell’s revenue drops 6% in Q3 2023 financial yearaccording to the results announced at the end of November.

Sales of products, such as desktops, laptops and workstations, which represent the bulk of the group’s business, fell 10%.

Group executives point to a decline in demand for personal computers as people in the United States and around the world face high inflation and rising interest rates.

But the company has navigated previous recessions and “emerged stronger” from them, Clarke noted in the memo.

He added that Dell will “be ready when the market recovers.”

According to expert site, just over 88,000 tech workers have lost their jobs since early January worldwide, excluding Dell’s announcement on Monday.

© 2023 AFP

quote: US tech giant Dell to cut 5% of global workforce (2023, February 6) accessed February 6, 2023 from tech-giant-dell-global-workforce.html

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