Dell to lay off 5% of its workforce

Dell plans to lay off about 5 percent of its workforce, the company said in a regulatory filing Monday, in the latest example of tech companies cutting costs in an uncertain economic environment.

As of January 2022, Dell said it had 133,000 employees. At that level, a 5% cut would represent more than 6,500 employees.

The computing giant cited a “challenging global economic environment” for the cuts. In a letter to employees, Dell Vice Chairman Jeff Clark said the steps the company has already taken — such as restrictions on employee travel and a freeze on outsourcing — are insufficient.

“What we do know is that market conditions continue to deteriorate with an uncertain future,” Clarke told employees. “The steps we’ve taken to stay ahead of the impact of the recession — which has enabled several strong constituencies in a row — are no longer enough. We now have to make additional decisions to prepare for the road ahead.

The move comes at a time when layoffs continue in the tech industry. Amazon, Microsoft, Google and others have each announced plans to cut thousands of workers as companies adjust to changing demand from the pandemic and fears of a deepening recession.

Dell is also dealing with low demand for personal computers.

Consulting firm Gartner said last month that worldwide PC shipments fell by more than 28 percent in the fourth quarter of 2022 compared to the same period last year. This is the largest quarterly shipment decline since Gartner began tracking the PC market in the mid-90s.

Dell, in particular, saw a 37 percent drop in PC vendor unit shipments during the final three months of 2022, according to Gartner.

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