After the pandemic boom, the demand for technology hardware drops significantly. Computer manufacturer Dell initially relies on austerity measures, but now, like many other tech companies, is announcing massive job cuts. The workforce will be reduced by around five percent worldwide.
The American PC manufacturer Dell wants to cut thousands of jobs in view of the weakness in the PC market. He joins the wave of layoffs at tech companies. According to an internal message from top executive Jeff Clarke, the company is facing market conditions that continue to deteriorate, leaving an uncertain future.
The group, based in Round Rock, Texas, confirmed to the Bloomberg news agency, which has received Clarke's internal notification, that the cuts in the targeted 6,650 jobs will involve around five percent of global employees. Clarke wrote in the statement that the savings measures introduced so far, such as a hiring freeze or fewer business trips, are no longer sufficient.
After the boom in the pandemic, consumers have significantly reduced their demand for technology hardware such as smartphones and laptops. According to the consulting firm Gartner, a decline of almost seven percent must be expected in the current year. High inflation and uncertain economic prospects are dampening the buying mood. 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.
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. Rivals such as HP Inc. and IBM have also recently announced that they want to get rid of thousands of employees. 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.
