Dell is to slash more than 6,500 jobs, around 5% of the company’s workforce, due to a computer sales slump.
The IT company follows other tech businesses like Microsoft, Google and Amazon in shrinking its workforce.
Hiring freezes and reduced travel expenses were no longer enough to cut costs, Dell’s co-chief operating officer Jeff Clarke said in a note to employees.
Dell saw revenues fall 6% year on year in the three months to October, with diluted earnings per share falling by 93% in the same period- a trading update revealed.
The biggest source of revenue for the business is computer sales which fell by 37% in late 2002, research from market analysts IDC found.
“We’ve navigated economic downturns before and we’ve emerged stronger,” Jeff Clarke said.
Consumer demand is expected to slow in 2023 for the Texas-based company, due to inflation, increased interest rates and stunted economic growth- chief financial officer Tom Sweet stated to investors.
Dell currently employs 2,220 staff in the UK, according to companies house, however, the tech firm is yet to announce how many British staff will be affected.
Almost half as many Technology company employees have been laid off in the first weeks of 2023 (88,138) as in the whole of 2022 (159,766)- layoff.fyi a website tracking staff cuts found.
Dell’s share price, US$42.24 is up 3.3% in 2023 after falling 30% in 2022.