Dell Technologies Inc has announced new layoffs which include firing around 6,650 people from their jobs, or, to be more exact, approximately 5% of its global workforce.
With this move, Dell found itself among many other tech behemoths to announce job eliminations.
According to Bloomberg, Co-Chief Operating Officer Jeff Clarke commented that the company is going through hard market conditions that “continue to erode with an uncertain future.”
“We’ve navigated economic downturns before and we’ve emerged stronger. We will be ready when the market rebounds,” Clarke stated.
According to the tech analyst IDC, preliminary data show personal computer shipments plunged by 37% in the fourth quarter of 2022.
Approximately 55% of Dell’s revenue comes from PC sales and this reduction means that the Texas-based company will be at its lowest in at least six years
Statistics showed that just one-third of the employees are based within the United States.
On the beginning of the year, Dell said it intends to cut down its reliance on Chinese chips and entirely stop using them by 2024, due to the huge competition between the two countries.
Last year the company presented a growth of 68% in its quarterly operating profit, due to the big demand for servers and network equipment. However, the client’s revenue plunged by 29% while commercial revenue, went down by 13%. Total revenue fell by 6% to $24.72 billion but beat expectations of $24.54 billion.