The relentless trickle of layoffs among technology companies around the world continues. Needless to say, after the thousands and thousands of jobs created throughout 2020 and 2021 with the covid-19 pandemic and teleworking as major protagonists.
The latest to join the job cuts is Dell. The Texas-based company that develops, manufactures, sells, and supports personal PCs and servers, among other services, will do without 6,650 jobs worldwide.
The reason? The one that all justify: the economic uncertainty that seems to be one of the great challenges to overcome in 2023. According to The Guardian, Dell’s co-director of operations, Jeff Clarke, has declared: “What we know is that the conditions of the markets continue to erode with an uncertain future (…) the steps we have taken to anticipate the impacts of the recession are no longer enough. We now have additional decisions to make to prepare for the road ahead.”
Dell, which currently has about 133,000 employees, It will thus dispense with 5% of its workforce. The company has not yet given more details about these cuts, which could more seriously affect the US, where a third of all its workers are located.
PC sales drop
2022 did not end well for Dell. In fact, with the pandemic, sales increased considerably. But in the last quarter of 2022 the data points to a 37% drop in PC shipments by Dell. A critical piece of information for a company where 55% of its income comes from the sale of this type of device.
In this sense, many companies brought IT purchases forward during the crisis, as the world shifted to virtual ways of working, which has inevitably had an impact on future budgets. With the prices rising and companies containing spendingthere has been a negative effect on PC sales
According to the web layoffs.fyi, which monitors job cuts in the technology industry worldwide, more than 290 technology companies have already announced 88,000 job cuts in these first bars of 2023compared to the 160,000 that were announced in all of 2022.
However, from Dell they are optimistic: “We have already gone through economic crises and we have come out stronger (…) we will be ready when the market picks up,” Clarke declared, trusting that these layoffs will be the last to be made by the company.
