Dell layoffs: Company reduces its global workforce by about 6,000 jobs after rule change for remote employees

Dell layoffs: The layoffs in Dell come at a time of slow demand for company's personal computers for nearly two years.

Updated on: Mar 27, 2024, 10:18:42 IST

By HT News Desk

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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.

As of February 2, 2024, Dell had nearly 120,000 employees

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.

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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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.

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HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

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