Dell Plans to Layoff 5% of its Global Workforce Followed by its Rival Company HP: Here’s What We Know

HP had announced its plans to reduce its workforce in the next three years and following this Dell has also decided to cut down about 6,500 of its employees globally.

Read more about it below.

Dell to Cut Down 6,500 Employees from its Workforce

We recently saw layoffs of big tech companies like Google, Amazon, Microsoft, Spotify and others, cutting down its workforce to meet with the increasing expenses that are going out of hands for the companies. We now have Dell, the personal computer manufacturers, planning to layoff 5% of its global workforce which amounts to a total of 6,500 of its employees.

In the month of November, we had also come across HP, one of Dell’s rival companies who had also announced its plans to cut down about 6,000 employees from its workforce in the coming three years. International Business Machines Corp and Cisco Systems Inc. are two other companies which are also planning to layoff its employees

As per what the Industry Analyst, IDC(International Data Corporation) has pointed out, from the 4th quarter of 2022 itself, the sales of personal computers has reduced in a very rapid manner with Dell facing the biggest decline in its sales of about 37%.

With Dell having its revenue of about 55% coming from the sales of personal computers, this lose has affected the company in a very severe manner.

The previous measures taken by the company like stopping of new recruitments to the company and the steps taken to reduce travel expenses has been of no use.

In the recent memo issued to the workers by Jeff Clarke, the Co-Chief Operating Officer at Dell, he has mentioned how the sales continues to decline without any hope in the future.

After the layoff, Dell will only have about 1,26,300 total employees in its workforce, which is the lowest number of employees the company has had in about six years.


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