close_game
close_game

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

Mar 27, 2024 10:18 AM IST

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

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

Read more: Zerodha's Nikhil Kamath says he ‘felt insecure’ about being a school dropout: ‘Parents gave up on me’

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.

Read more: Canadian businessman Kevin O’Leary wants to buy TikTok but at 90% discount: ‘Most complex deal’

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?

Read more: Motilal Oswal says Paytm revenue to fall by 24%. Google Pay, PhonePe to benefit?

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.

rec-icon Recommended Topics
Share this article
Stay updated with the latest Business News on Petrol Price, Gold Rate, Income Tax Calculator along with Silver Rates, Diesel Prices on Hindustan Times.
See More
Stay updated with the latest Business News on Petrol Price, Gold Rate, Income Tax Calculator along with Silver Rates, Diesel Prices on Hindustan Times.
SHARE THIS ARTICLE ON
SHARE
Story Saved
Live Score
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Thursday, February 20, 2025
Start 14 Days Free Trial Subscribe Now
Follow Us On