5% Of Dell's Workforce Will Be Laid Off

February 6, 2023

minute read

It was announced on Monday that Dell would lay off about 6.650 of its employees, or 5% of its workforce, according to a filing with the Securities and Exchange Commission.

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As the global demand for PCs and laptops has slowed down, Dell has decided to cut jobs in response to that. It has been estimated that in the fourth quarter of 2022, global shipments of PCs are expected to decline by 28% year-over-year, according to Trade Algo. In that same period, Dell had a reduction of 37% in its shipments of computers, while its competitors Lenovo, HP, and Apple had declines of 28%, 29%, and 2%, respectively.

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In premarket trading on Tuesday, Dell shares were up 2% from Monday's close.

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Jeff Clarke, Dell's co-chief operating officer, said in a memo to employees that the cuts were made in an effort to "stay ahead of the impact of the economic downturn on the company". Several changes had already been implemented by Dell, but, according to him, they were no longer sufficient, such as limiting travel, pausing external hiring, and reducing spending on outside services.

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There will, unfortunately be some people leaving the company as a result of changes such as these,” Clarke said. It was a tough decision to make, but one we had to make in order to ensure our long-term success and health.

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A filing with the Securities and Exchange Commission shows that Dell had 133,000 employees as of Jan. 28, 2022.

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Dell's CEO, Michael Clarke, wrote in a memo to the company's employees that Dell has survived economic downturns before and emerged stronger as a result.

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“You can count on us to be ready when the market rebounds,” he said.

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PayPal announced plans Tuesday to cut 2,000 jobs as a result of its planned layoffs, marking the latest round of job cuts in the technology industry. As announced earlier this month, Google will lay off more than 12,000 workers in the coming weeks. Microsoft will lay off 10,000 workers in the coming weeks. Salesforce will lay off 7,000 workers in the coming weeks.