With slump in sales, Dell Computers to cut 6,000 jobs

AUSTIN, Texas: Amid the slump in the personal computer market and a potential recession, Dell Technologies announced this week that it will cut some 6,650 jobs, or 5 percent of its global workforce.

The layoffs were first reported by Bloomberg News.

This year, many US companies, including Goldman Sachs, have laid off thousands of staff due to the downturn caused by high inflation and rising interest rates.

After a post-pandemic collapse in PC sales, which account for more than half of its revenue, Dell had earlier put in place cost-cutting measures, such as a hiring pause and limits on travel.

However, co-Chief Operating Officer Jeff Clarke said those moves are "no longer enough" in a memo to employees.

"What we know is market conditions continue to erode with an uncertain future," he said.

Susannah Streeter, markets analyst at Hargreaves Lansdown, noted, "It was only a matter of time before the wave of tech layoffs reached Dell’s shores, given how sensitive the company is to both consumer and corporate confidence," as quoted by Reuters.

As of 28th January, 2022, Dell had some 133,000 employees, with some one-third based in the US.