The computer manufacturer Dell is eliminating more than 6,500 jobs in response to diminishing sales.
Dell informed employees on Monday that it was cutting 5% of its workforce, or 6,650 jobs, in the coming weeks, according to a memo reviewed by Bloomberg. It will be the lowest headcount for Dell in six years. It is also the latest series of tech-sector layoffs after Google, Amazon, Facebook, Spotify, and other companies made massive cuts to their personnel count.
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The computer market “continue[s] to erode with an uncertain future,” Dell co-COO Jeff Clarke wrote in the memo. Clarke told staff that previous attempts to cut costs, including hiring pauses and travel limits, were not enough. The staff cuts are a chance to improve company efficiency, Clarke said.
Google, Microsoft, and Amazon laid off tens of thousands of workers over the previous few weeks. PayPal announced that it was cutting 2,000. Spotify announced on Jan. 23 that it was laying off 6% of its workforce. The financial software developer Workday announced on Tuesday that it was cutting more than 500 jobs.
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Many of the companies announcing layoffs said that they are doing so to cut costs and to consolidate after massive expansions amid the pandemic.
Dell informed suppliers in late 2022 that it intended to stop using Chinese computer chips by the end of 2024.
