- Many significant corporations have laid off staff in recent years, particularly in the aftermath of the pandemic, and Dell joins these corporations.
- A Dell spokesperson reported that Dell will be laying off 5 percent of its global workforce, which is around 6,650 workers.
- Dell has announced a number of measures which includes stopping external hiring, limiting travel, and decreasing outside services spending.
In recent years, many large companies have been laying off workers, especially after the pandemic. The reasons for these layoffs vary but often include growing economic uncertainty. Amazon was seen laying off a massive chunk of people totaling 18,000 jobs, Twitter with thousands after Elon Musk acquired the company, 6,000 no longer working at HP, and Google cutting more than 6% of its global workforce.
Dell joins others in economic uncertainty
Dell has shared a series of decisions, including pausing external hiring, limiting travel, and reducing outside services spending to “help the company navigate the challenges of the global economic environment”. Dell Technologies had a bad quarter, with consumer revenue decreasing by 29% and net revenue decreasing by 6%. Net revenue was also down.
Jeff Clarke, Vice Chairman of Dell Technologies, announced that the company will be facing even more changes and some resets across the organization. These changes include:
- Aligning Regional Sales and Dell Technologies Select (DTS) teams to provide additional consistency in how we work with customers and partners worldwide, collaborate and share best practices faster, all of which help us grow. With the regional leads and DTS rolling up to one leader, support teams will align to a similar structure and streamline their functions.
- Integrating support services into ISG and CSG to tighten the feedback loop between customers, support, and product teams. It also aligns accountability for the cost of services closer to the control points in engineering and product design. All this adds up to Dell’s ability to develop more integrated solutions more quickly.
- ISG engineering has shifted teams and resources to the priority offerings that will best serve customers and partners’ needs.
The company adds that laying off workers is also inevitable with these changes. A Dell spokesperson clarified that this change will impact about 5 percent of Dell’s global workforce.