Dell Technologies Inc. is set to cut about five percent of its global workforce, amid an “uncertain future” for the computer company.
The layoffs come as Dell has dealt with a post-pandemic collapse in PC sales, which account for more than half of the company’s revenue.
Job Cuts Across the Tech Industry
The layoffs at Dell come as technology companies have been cutting tens of thousands of jobs in recent months.The tech industry cut 97,171 jobs in 2022, an increase of 649 percent over the year prior, Bloomberg reported.
In November, Amazon began cutting around 11,000 jobs. The e-commerce company expanded those cuts to around 18,000 jobs in January. The cuts impacted about 1.2 percent of the company’s global workforce of about 1.5 million employees.
In January, Salesforce also began laying off about 8,000 employees, as it cut about 10 percent of its workforce.
The cryptocurrency exchange Coinbase also cut 950 jobs in January, removing about 20 percent of its workforce at the time. It was the second round of job cuts in less than a year.
Susannah Streeter, a markets analyst for Hargreaves Lansdown said, “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.”
In his company-wide memo to Dell employees, Clarke said the computer company will “prevail” through the current market conditions.
“We’ve navigated economic downturns before and we’ve emerged stronger. We’ll prevail as we always do, for our customers, partners and each other,” Clarke wrote. “We’ll be more competitive, more focused and find a new level of operational performance. We will be ready when the market rebounds.”
NTD News reached out to Dell Technologies Inc. for comment but the company did not respond by the time this article was published.