Dell CEO Michael Dell delivers a keynote address during the 2013 Oracle Open World conference on September 25, 2013 in San Francisco, California.
Justin Sullivan | Getty Images
Dell on Monday announced plans to lay off 5% of its workforce, or about 6,650 employees, according to an SEC filing.
The cuts come as global PC shipments continue to plummet after a huge boom in sales during the pandemic. Global shipments fell 28.1% year-over-year in the fourth quarter, according to the latest data from research firm IDC.
In a memo to employees, Jeff Clarke, co-chief operating officer at Dell, said the cuts were made in an effort to “stay ahead of downturn impacts. He said the changes Dell had already implemented, like limiting travel, pausing external hiring and reducing outside services spending, were no longer sufficient.
“Unfortunately, with changes like this, some members of our team will be leaving the company,” Clarke said. “There is no tougher decision, but one we had to make for our long-term health and success.”
Dell had 133,000 total employees in 2022, according to PitchBook. Shares of Dell were up 2% in premarket trading Tuesday.
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 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.