The boom experienced by the hardware and personal computer sector during the height of the pandemic is deflating. Demand has fallen drastically in the fourth quarter of 2022. In the case of the manufacturer Dell Technologies, the decline has been 37% in one year, so the company will proceed to cut 6,650 jobs.
The multinational thus joins the wave of layoffs led by large technology companies, such as Microsoft, Alphabet and Amazon, which have announced a reduction of thousands of jobs in recent months, thus ending a time of historic growth in the digital sector. .
As Bloomberg has advanced, Dell's vice president and co-director of operations, Jeff Clarke, has explained that market conditions "continue to erode" and the future is "uncertain." In this sense, Dell is the one that has suffered the most from the decrease in demand among the main companies in the sector. The reason, industry analysts say, is that around 55% of its revenues come from PCs.
In order to cushion the fall in sales, the company previously adopted some measures to reduce costs, such as halting new hires and limiting employee travel. But he assures that they are not enough.
The company's sales fell 6% through October and the forecasts for the current quarter are not very rosy due to the reduction in the consumption of technological devices. “We have navigated economic downturns before and come out stronger,” Clarke wrote in a statement sent to employees. And he added: "We will be ready when the market recovers."
Dell's competitors have also announced layoffs. This is the case of HP, which will lay off 6,000 workers, and Cisco Systems and International Business Machines (IBM), which will eliminate 4,000 positions each. In total, the technology sector announced about 100,000 last year, according to data from consultancy Challenger, Gray
After the downsizing, Round Rock, Texas-based Dell's headcount will be the lowest in at least six years: about 39,000 fewer employees than in January 2020.
