The wave of layoffs at tech companies continues. High inflation and uncertain economic prospects are also causing problems for Dell.
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 5 percent of global employees. Clarke wrote in the statement that savings measures such as travel restrictions that have been introduced so far are no longer sufficient.
decreased demand
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 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 Inc Inc. and IBM have recently also 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.
Source: Stern
