Tech workers were hit hard today when Dell announced it would lay off 5% of its workforce worldwide in the face of plummeting PC sales and general economic uncertainty. That means there are 6,650 more unemployed.
The company peaked at 165,000 employees in January 2020 and has been cutting headcount since, according to Bloomberg data. It fell to 133,000 before today’s announcement, but is expected to hit 126,350 after today’s price cut.
Employees were notified via email by Jeff Clarke, Co-CEO and Vice Chairman of Dell, of the usual boilerplate that accompanies these documents. Clark said the move was an unfortunate consequence of the current economic climate.
“Unfortunately, some members of our team will be leaving the company as a result of these changes. Please know that we will support those affected as they transition to the next opportunity,” he wrote.
He concludes: The amount of data continues to grow exponentially. Our innovations are driving progress around the world. And our customers count on us as a reliable partner. I have never been more confident in our future and in our team. For those receiving layoff notices today, that probably comes as little consolation.
The company is ending the quarter with revenue down 6% to $25 billion.
As we reported last month, data from IDC, Canalys, and Gartner showed PC sales plummeting for the fourth straight quarter, with Dell posting the largest loss of 37% among the largest PC makers. But Dell is more than the PC business. Also, the enterprise business is doing well.
Dell made headlines in 2015 when it acquired EMC for $67 billion (later valued at $58 billion). This was the largest technology deal in history at the time. The deal left the company with a lot of debt, which the company is still trying to pay back.VMware was included in the acquisition, before Broadcom offered to buy him for $61 billion last May. The company spun out last year. That purchase is still bound by regulatory approvals.
Yet so many are thrown out, as opposed to laying off workers to cut costs. The news comes after more than 80,000 workers lost their jobs at other tech giants last month, and unfortunately the work may not be done yet.
