Dell plans to lay off 5% of workforce amid slowing PC demand

Dell Technologies Inc plans to wave about five percent of its employees or about 6650, as demand for PCs and laptops has decreased globally, the company disclosed in a regulatory filing on Monday.

The company’s layoff announcement marks the latest round of job cuts in the tech industry, as PayPal on Tuesday announced plans to cut 2,000 jobs.

Global shipments of PCs were down 28 percent year over year in the fourth quarter of 2022, according to industry analysts at IDC.

Dell has witnessed the greatest decrease for the computer shipment to fell at 37 percent compared to the same period in 2021 according to IDC.

Company’s co-chief operating officer, Jeff Clarke said that Dell had already implemented moves, such as limiting travel, pausing external hiring and reducing outside services spending, were no longer sufficient.

This move is part of an initiative to “better structure us for the future, to better collaborate, reduce complexity, increase speed and to accelerate innovation,” wrote Clark in an internal memo

Moreover, IBM systems announced that it will release around 4000 employees and technology industry will decrease 97,171 jobs in 2022.