Bea Beltran Tech 02.06.2023 23:Feb PM EST

Dell Lays Off 6,600 Workers Amidst Drop in Sales

Dell is among the many companies in the tech industry that has issued layoffs. Like other companies, Dell is also facing issues with demand for its products, as well as setbacks brought by the economy itself. This has led to the reduction of around 6,600 jobs.

Dell's Reduction

The number of employees that lost their jobs accounts for 5% of Dell's global workforce, which will leave the company with 126,00 employees. This has been the lowest number of workers that Dell has had since 2017.

The tech company did not immediately resort to job cuts. According to Jeff Clarke, co-CEO of Dell, they tried other measures first like a hiring freeze and putting a limit on travel. The reduction came when there was no other choice to make.

Dell, like other tech companies, has been experiencing struggles in its hardware sales. The tech industry felt a boom in sales during the pandemic with people being forced to stay at home for work, requiring their own devices, but that has since died down and Dell has felt it as well.

The company remains optimistic, as a spokesperson said to Gizmodo that they are continuously assessing their business, which is to make sure that they can provide the best innovation, value, and service to their customers and partners.

They also mentioned that this is imperative given that economic uncertainty has not dissipated. Dell hasn't hired new employees since June 2022, and reduced its spending to "navigate a challenging global environment."

They explained the reduction in the workforce by expressing that their goal is efficiency achieved through department reorganizations, which then led to the job cuts that the company implemented. Although they did mention that the decision was not taken lightly.

More Layoffs for the Tech Industry

Dell is not alone in its struggles in the PC market. HP is also laying off thousands of workers, which will be over the course of three years. The downsize will eventually lead to layoffs of 4,000 to 6,000 employees, which will be done by 2025.

The company also reasoned that it was due to the economic state as well as its drop in quarterly earnings, which has dropped 11% compared to what it earned at the same time in the previous year, according to Edition.

As of November 2022, HP has around 51,000 employees. Enrique Lores, President and CEO of HP, explained that the job cuts were a part of the company's "Fure Ready Strategy" wherein the company will reduce costs and reinvest in "key growth initiatives" for the future of HP.

Intel is also not exempt from the current economic slump. Its cost-cutting measures have also affected its employees as the company has already begun layoffs. Many of the job cuts will be implemented in several Intel locations like California and Santa Clara.

This is part of Intel's efforts to save around $3 billion annually, with the long-term goal in mind of saving $8 billion to $10 billion by 2025. According to the Times of India, the workforce reduction will mainly come from operations and sales departments.