Dell is About to Lay off 6,650 Employees

Dell Technologies Inc. is about to cut around 6,650 employees which are 5% of its global workforce as it is affected by lower demands for its personal computers. According to the reports provided by Dell, there is a 6% decrease in sales at end of October ad generated unexpected revenue projections for the current quarter. Dell said that consumers reducing their IT purchases leads to a lower generation of revenue and this is the reason behind the job cutoffs.

The company expected to deliver further information on the whole scenario of the financial impact behind its job layoffs after the results of the fiscal fourth quarter on 2nd March. Tech firms have been majorly impacted by job cuts in recent months. The competitors of Dell are also sensing the same effects. HP Inc. also faces the problem of lower demand for PC in the IT market and declared to plan job cuts for up to 6000 employees till November. 

Several other companies like Microsoft, Amazon, and many more have laid off thousands of working employees to survive the decrease in demand because of rising interest rates and inflation. As per the reports, many companies are preparing for a potential recession, particularly in the technology market. The spokesperson of Dell said, to improve efficiency in the marketplace job cuts and restructuring of departments are the necessity of the current situation.

A slowdown in consumer demand after pandemic years and unexpected microeconomic conditions hit mass layoffs across major tech companies in the United States in the past few months. Last month, the technology sector witnessed about 41,829 jobs being slashed. It is the highest rate in tech firms. The layoffs not only affected startups but also affected big tech firms like Google parent Alphabet, Microsoft, Amazon, etc. As per reports, around 256 tech companies laid off 82,769 employees in 2023.