Dell CEO Michael Dell delivers a keynote address at the 2013 Oracle Open World Conference on September 25, 2013 in San Francisco, California.
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Dell on Monday announced plans to lay off 5% of its workforce, or about 6,650 employees, according to an SEC filing.
The cuts at Dell come as demand for PCs and laptops has slowed globally. Global PC shipments were down 28% year-over-year in the fourth quarter of 2022, according to industry analysts at IDC. Computer shipments at Dell were down 37% for the same period, while rivals Lenovo, HP and Apple were down 28%, 29% and 2% respectively.
Dell shares rose 2% in premarket trading on Tuesday.
In a memo to employees, Jeff Clarke, Dell’s co-chief operating officer, said the cuts were made to “get ahead of the impacts of the recession.” He said the changes Dell had already implemented, such as limiting travel, suspending outside hiring and reducing spending on outside services, were no longer enough.
“Unfortunately, with changes like this, some of our team members will be leaving the company,” Clarke said. “There is no tougher decision, but one we had to make for our health and long-term success.”
As of Jan. 28, 2022, Dell had 133,000 total employees, according to an SEC filing.
In the memo to employees, Clarke said Dell has been through economic downturns before and “came out stronger.”
“We will be ready when the market rebounds,” he wrote.
The company’s layoffs announcement marks the latest round of job cuts in the tech industry, as PayPal announced plans to cut 2,000 jobs on Tuesday. Earlier this month, Google announced plans to lay off more than 12,000 workers, Microsoft announced plans to cut 10,000 employees, and Salesforce announced plans to lay off 7,000 workers.
