Dell Technologies Inc., experiencing falling demand for personal computers, will lay off around 6,650 workers, becoming the latest technology business to announce job cuts. The firm is dealing with market circumstances that “continue to degrade with an unclear future”, according to a document seen by Bloomberg. Dell announced a 6% drop in sales for the quarter ended October 28 and a revenue projection for the current quarter that fell short of analysts' expectations, citing customers' reduced purchases of information technology. When the business announces its fiscal fourth-quarter earnings on March 2, it is likely to disclose further details on the financial effect of the job cuts.
“We’ve navigated economic downturns before and we’ve emerged stronger," We will be ready when the market rebounds," Clark added further. A similar layoff had been announced in 2020 as a result of the Covid pandemic. As per industry analyst IDC, sales of personal computers dropped sharply in the fourth quarter of 2022. Dell saw the largest decline with 37 percent as compared to the corresponding period a year ago. PCs generate about 55 percent of Dell's revenue. Another major PC manufacturer, HP, announced in November 2022 to slash up to 6,000 jobs over the next three years. Cisco Systems and International Business Machines both announced they would eliminate about 4,000 jobs. Dell and other hardware manufacturers have noticed a drop in demand following a pandemic-era PC boom. According to preliminary statistics from industry researcher IDC, personal computer shipments declined dramatically in the fourth quarter of 2022. Dell saw the worst loss among significant corporations, with a 37% drop compared to the same period in 2021. PCs account for around 55% of Dell's revenue.