Dell Technologies said it will lay 5% of its workforce, or about 6,650 employees, to deal with the "challenging global economic environment," according to an SEC filing.
The computing giant has been hit hard by the decline in PC shipments worldwide.
- In a memo to employees, Dell vice chairman Jeff Clarke said the company has already paused hiring, restricted employee travel, and taken other cost-cutting measures, which haven't been enough.
- Dell now has to pursue "additional decisions" to make preparations "for the road ahead," he wrote.
- After the staff reductions, Dell is expected to have nearly 40,000 fewer employees than it did at its peak in January 2020.
- The hardware maker benefitted from the pandemic-fueled boom in PC purchases.
- Dell reached a height of 17.28 million computer shipments in the final quarter of 2021 before those numbers fell precipitously during 2022.
- In the fourth quarter of 2022, Dell's PC shipments were down by 37% YoY, a higher percentage than Apple, Lenovo, and HP.
