The technology giant, Dell, headquartered in Texas, announced it will lay off nearly 5% of its workforce.
ROUND ROCK, Texas — Dell Technologies, headquartered in Round Rock, Texas, is the latest tech company to announce an employee layoff. On Monday, the computer manufacturer announced it will lay off nearly 5% of its workforce.
The demand for PCs has collapsed after a two-year boom due to the pandemic with many people working from home and splurging on new computers and accessories. In a letter to its employees on Monday, Dell’s vice chairman Jeff Clarke touched upon the changes Dell has had to make to navigate the challenges of the “global economic environment,” which include a pause on external hiring, limiting travel and reduce outside service spending. With an uncertain future of the market conditions, Clarke says these measures are simply not enough to sustain the company.
Over the next weeks, the organization will face some restructuring to “reduce complexity,” “increase speed” and “accelerate innovation.” This includes laying off of some of its team members. These layoffs come amid a global termination of many employees in tech from giant companies including Amazon, Microsoft and Google. , PC vendor shipments were down 37% in the fourth quarter of 2022 compared that of the same time frame in 2021. The other top two PC vendors, Lenovo and HP, faced roughly a 29% drop in shipments in 2022's 4Q compared to that of 2021's.
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