Sina technology news Beijing time February 6 afternoon news, in the face of sluggish global PC demand, Dell Inc. announced today that it will lay off about 6650 people, becoming the latest technology company to lay off thousands of people.
Jeff Clarke, Dell's co-chief operating officer, said in an internal memo that the job cuts were because the company was facing deteriorating market conditions and uncertain future prospects. The job cuts represent about 5% of Dell's global workforce, according to a Dell spokesman. When the job cuts are complete, Dell's headcount will be the lowest in six years.
Dell and other hardware makers have seen demand fall after a PC boom during the pandemic. Preliminary data from authoritative research firm IDC shows that global PC shipments fell sharply in the fourth quarter of 2022. Among the major PC vendors, Dell had the biggest drop, falling 37 percent from a year earlier. Currently, about 55 percent of Dell's revenue comes from PCS.
Clark said in the memo that the company's previous cost-cutting measures, including hiring halts and travel restrictions, were no longer enough to tide it over. A Dell spokesman said the company hopes to improve efficiency through division restructuring and job cuts.
In recent months, US technology companies have cut jobs on a massive scale. Hewlett-packard, which has also been affected by the PC market, announced layoffs of up to 6,000 employees in November. Cisco and IBM both said they would cut about 4,000 jobs. Consulting services firm Challenger, Gray & Christmas Inc. According to the data, 97,171 jobs were cut in the US tech sector in 2022, up 649% from the previous year.
The cuts will bring Dell's total headcount to its lowest level in at least six years, about 39,000 fewer than in January 2020. Only about a third of Dell's employees are based in the United States, according to a March 2022 filing.
Dell's total net revenue for the third quarter of fiscal 2023, which ended in October, was $24.721 billion, down 6% from a year earlier. Dell also gave fourth-quarter revenue guidance that fell short of analysts' expectations, saying customers were buying fewer IT products. Dell reports quarterly earnings on March 2.
"Dell has been through downturns before and emerged stronger," Clark said in the memo. Now we will be ready for a market rebound."
Managing Editor: Liu Mingliang
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