PC sales are down, and Dell is feeling the squeeze.
Sales of prefab PCs, both desktops and laptops, have been down lately, with global shipments down by 28% as of Q4 2022 compared to the year prior. All of the major players in the computer sector are feeling the pressure, with Lenovo, Apple, and HP all seeing a drop in global sales. However, one of the most-affected companies is veteran PC brand Dell.
For Q4 2022, Dell’s global PC sales dropped by 37%, more than any of the other aforementioned companies. As a result of this, Dell is enacting cutbacks, with the first on the agenda being layoffs. Dell announced this week that they will be cutting out 5% of their global workforce, accounting for roughly 6,650 jobs.
“In the coming days and weeks, you’ll begin to see a series of changes – some resets – across the organization to better structure us for the future, to better collaborate, reduce complexity, increase speed and to accelerate innovation. They’ll help us focus on purpose-driven work and be in the best position to make the greatest difference for customers, Dell Technologies and each other,” Dell co-chief operating officer Jeff Clarke said in a memo to employees.
“Unfortunately, with changes like this, some members of our team will be leaving the company. There is no tougher decision, but one we had to make for our long-term health and success. Please know we’ll support those impacted as they transition to their next opportunities.
Dell to lay off about 6,650 workers https://t.co/8gHwcl8Pvu
— BBC News (World) (@BBCWorld) February 6, 2023
“Remember, we’ve navigated economic downturns before and we’ve emerged stronger. We’ll prevail as we always do, for our customers, partners and each other. We’ll be more competitive, more focused and find a new level of operational performance. We will be ready when the market rebounds.”