PC shipments are plunging due to a tough economy and the pandemic recovery, and that's proving to be especially painful for Dell. The company is laying off about five percent of its workforce, or roughly 6,650 employees, to cope with a "challenging global economic environment." Earlier cost reduction measures like an external hiring freeze weren't enough, according to operations chief Jeff Clarke. A market that "continues to erode" requires further action, he says.
The layoffs include organizational changes and "resets," Clarke says. This includes streamlined sales and services, as well as engineering that focuses on "priority offerings." Bloombergnotes the job cuts will bring Dell's employee count to its lowest in six years, and 39,000 below what it had at the start of the pandemic in January 2020.