This was reported by Ukrinform with reference to Bloomberg.

Jeff Clark, Dell’s COO, wrote in a note that the company faces market conditions that “continue to erode due to an uncertain future”.

According to him, the reduction is about 5% of Dell’s global workforce.

Dell and other hardware manufacturers have slumped in demand after the computer boom in the era of the coronavirus pandemic. Industry analyst IDC said preliminary data showed personal computer shipments fell sharply in the fourth quarter of 2022. According to IDC, the biggest drop among large companies was in Dell, with 37% compared to the same period in 2021. Dell generates about 55% of its revenue from computers.

Clark told staff that previous cost-cutting measures, including a hiring freeze and travel restrictions, are no longer sufficient. According to him, the restructuring of the department along with the layoffs is seen as an opportunity to increase efficiency.

After the cuts, Dell’s workforce in Round Rock, Texas will hit a low in at least six years, with approximately 39,000 fewer employees than in January 2020.

Dell also reported a 6% drop in sales for the period ended Oct. 28 and gave a revenue forecast for the current quarter, which missed analysts’ estimates by saying customers were cutting back on their information technology purchases.

Layoffs have hit the tech industry in recent months, including many of Dell’s competitors. HP Inc., which also operates in the PC market, announced in November that it would lay off 6,000 people. Cisco Systems Inc. and International Business Machines Corp. announced that they will lay off about 4,000 workers. The tech industry announced 97,171 layoffs in 2022, up 649 percent year on year, according to consulting firm Challenger, Gray & Christmas Inc.

Big companies like Google, Microsoft and Amazon announced thousands of jobs