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Dell is cutting thousands of jobs


PC maker Dell joins wave of layoffs at US tech companies. According to an internal letter, the group is cutting more than 6,000 jobs.

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Dell logo: Existing austerity measures are not enough

Photo: Monika Skolimowska / dpa

The weakness in the PC market prompts Dell to take a drastic step.

The American company wants to cut thousands of jobs.

According to an internal message from top executive Jeff Clarke, the company is facing market conditions that continue to deteriorate, leaving an uncertain future.

According to the letter, 6,650 jobs will be lost.

The PC manufacturer based in Round Rock, Texas, confirmed this to the Bloomberg news agency.

Accordingly, around five percent of the world's employees are affected by the cut.

Clarke wrote in the statement that savings measures such as travel restrictions or a hiring freeze were no longer sufficient.

Boom is over

After the boom in the pandemic, consumers have significantly reduced their demand for technology hardware such as smartphones and laptops.

High inflation and uncertain economic prospects are dampening the buying mood.

According to a study by the consulting firm Gartner, sales at the end of 2022 collapsed more than ever before.

A further decline of almost seven percent must be expected in the current year.

According to the market researcher IDC, Dell shipped 37 percent fewer computers in the last three months of the previous year than in the same period of 2021. Dell makes a good half of its sales with PCs.

Rivals such as HP and IBM recently also announced thousands of job cuts.

Up to 6,000 jobs are to be lost at HP and around 3,900 at IBM. US software companies are also experiencing a wave of layoffs after they had increased their staff significantly during the pandemic.

The figures for layoffs in the USA published last week reached almost 103,000 in January, the highest level in over two years.

More than half of this was in the technology sector.


Source: spiegel

All business articles on 2023-02-06

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