Dell Fires 6500 Employees: 5% Workforce Terminated Because Of This Reason


Sheetal Bhalerao

Sheetal Bhalerao

Feb 07, 2023


While experiencing falling demand for personal computers, Dell Technologies Inc. is all set to lay off around 6,650 workers.

Dell Fires 6500 Employees: 5% Workforce Terminated Because Of This Reason

Dell Technologies Layoffs Employees 

On monday, Dell Technologies said that it will lay off about 6,650 workers globally, becoming the latest technology company to do so.

Joining the league of the latest technology business to announce job cuts, Dell Technologies is dealing with market circumstances that “continue to degrade with an unclear future”, according to the sources

These layoffs amount to around 5% of Dell’s global workforce, according to a corporate representative.

Why Did This Happen?

It appears that Dell and other hardware manufacturers have noticed a drop in demand following a pandemic-era PC boom. 

During the fourth quarter of 2022, personal computer shipments declined dramatically, according to preliminary statistics from industry researcher IDC.

Dell seems to have witnessed the worst loss among significant corporations, with a 37% drop compared to the same period in 2021. 

So far, PCs account for around 55% of Dell’s revenue.

PC Sector Continues To Struggle

The past cost-cutting initiatives, such as a hiring freeze and travel restrictions, are no longer sufficient, informed Co-Chief Operating Officer Jeff Clarke to their employees.

The Co-Chief Operating Officer Jeff Clarke, was quoted as saying, “The company is experiencing market conditions that continue to erode with an uncertain future,”.

 The department reorganizations and job cuts are considered as a chance to increase efficiency, according to the spokeswoman.

Earlier, Dell announced a 6% drop in sales for the quarter ended October 28.

 It appears that the revenue projection for the current quarter fell short of analysts’ expectations, citing customers’ reduced purchases of information technology.

 Dell is most likely to disclose further details on the financial effect of the job cuts when the business announces its fiscal fourth-quarter earnings on March 2.

 The computer sector has been hit hard by layoffs in the recent months that includes many of Dell’s rivals and competitors. 

For instance, HP Inc., which is also heavily invested in the PC sector, announced a 6,000-person layoff in November.

When it comes to market share, HP shipped over 9,40,000 units, and Lenovo overtook Dell for the second position with a strong showing in the consumer segment.

After this development, Dell Technologies slipped to the third position as it lost momentum in the consumer segment.


Sheetal Bhalerao
Sheetal Bhalerao
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