Dell Technologies said that it will reduce its workforce as part of a broader initiative to cut costs. In a filing, the company said that it will limit external hiring and begin employee reorganization. The company has 120,000 employees, down from about 126,000 a year earlier as of February this year.
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What is the reason for layoffs in Dell?
The layoffs in Dell come at a time of slow demand for company's personal computers for nearly two years. This has resulted in a 11% drop in revenue in fourth-quarter earnings posted last month as Dell said that it expects net revenue in its client solutions group (CSG) to grow for the entire year but it had fallen 12% in the fourth quarter. Although, the company said that demand will improve and near-term challenges will be managed as it expects input costs. The company also said that there is likely to be “continued reduction of our other businesses' net revenue as a result of the change in our commercial relationship with VMware”, as per the filing.
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Dell's layoffs in 2023
Last year, Dell slashed 6,650 jobs as it said that it was preparing for a potential recession while demand for personal computers dwindled.
More trouble in Dell?
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{{/usCountry}}Last year, Dell slashed 6,650 jobs as it said that it was preparing for a potential recession while demand for personal computers dwindled.
More trouble in Dell?
Read more: Motilal Oswal says Paytm revenue to fall by 24%. Google Pay, PhonePe to benefit?
{{/usCountry}}Earlier Dell reportedly told remote workers that they can continue working from home but they will not be considered for promotions. In a departure from its hybrid work culture- which had started even before Covid pandemic struck-the company pushed for a strict return-to-office (RTO) policy and informed employees of a return-to-office mandate, categorising them as "hybrid" and "remote" workers.