Dell CEO Michael Dell provides a keynote tackle all through the 2013 Oracle Open World conference on September 25, 2013 in San Francisco, California.
Justin Sullivan | Getty Photographs
Dell on Monday declared options to lay off 5% of its workforce, or about 6,650 staff, in accordance to an SEC filing.
The cuts at Dell come as demand from customers for PCs and laptops has slowed globally. World wide shipments of PCs were being down 28% yr-above-12 months in the fourth quarter of 2022, in accordance to business analysts at IDC. Computer system shipments at Dell were down 37% for that same time period, though opponents Lenovo, HP and Apple had been down 28%, 29%, and 2% respectively.
Shares of Dell had been up 2% in premarket investing Tuesday.
In a memo to personnel, Jeff Clarke, co-chief working officer at Dell, claimed the cuts were created in an energy to “keep ahead of downturn impacts. He stated the modifications Dell experienced now implemented, like limiting travel, pausing exterior employing and reducing outdoors companies shelling out, ended up no for a longer time adequate.
“Regretably, with modifications like this, some users of our crew will be leaving the enterprise,” Clarke stated. “There is no tougher conclusion, but one particular we had to make for our prolonged-expression wellness and good results.”
As of Jan. 28, 2022, Dell had 133,000 overall personnel, in accordance to a business filing with the SEC.
In the memo to personnel, Clarke stated Dell has navigated economic downturns right before, and “emerged more robust” as a result.
“We will be prepared when the market place rebounds,” he wrote.
The company’s layoffs announcement marks the newest spherical of work cuts in the tech industry, as PayPal announced strategies to minimize 2,000 work opportunities Tuesday. Earlier this thirty day period, Google declared ideas to lay off more than 12,000 personnel, Microsoft declared ideas to slice 10,000 workers and Salesforce declared options to lay off 7,000 personnel.