The computer world is trying to reduce costs in order to get through the difficult process with minimum damage. In this context, we have seen and continue to see layoffs from many companies. The last company to take this step was computer manufacturer Dell.Dell cuts workforce by 5 percent
According to a report by Bloomberg, computer maker Dell is set to lay off about 6,650 people, representing 5 percent of its global workforce. Jeff Clarke, Dell’s Co-President of Operations, said the company’s previous cost-cutting measures, such as hiring interruptions and travel restrictions, fell short.
The massive demand declines in the PC and laptop industry were cited as the reason for Dell’s layoffs. During the global covid epidemic, computer sales saw an all-time peak, but now, with the effect of economic conditions, there is a decrease in demand. According to industry analyst IDC, Dell experienced a steep 37 percent year-on-year decline in sales in the last quarter. For Dell, which generates 55 percent of its revenue from computer sales, this is a serious drop.
Clarke says the layoffs are essential to Dell’s “long-term health and success.” While the firm sees this period as a restructuring period, after the layoffs, Dell will reduce the number of its employees to a six-year low.
Dell isn’t the only computing brand affected by the drop in hardware demand. In November, HP announced plans to cut about 6,000 jobs, while Lenovo said it would make an undisclosed number of layoffs in December 2022. However, giant companies such as Meta, Google, Microsoft, Amazon are also making high-volume layoffs.
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