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The 6650 Layoffs At Dell: 5 Big Changes, Cuts, And Michael Dell Facts

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The 6650 Layoffs At Dell: 5 Big Changes, Cuts, And Michael Dell Facts

(CTN News) – Infrastructure and PC giant Dell Technologies is facing some massive changes as it lays off 6,650 of its global 133,000 employees. This is roughly 5 percent of its total global workforce.

In a letter sent to employees on Monday, Jeff Clarke, vice chairman and co-chief operating officer of Dell Technologies, explained to them: “The steps we’ve taken to stay ahead of the downturn impacts have no longer been enough,” he wrote in his letter announcing the layoffs.

“We now have to make additional decisions to prepare for the journey that lies ahead of us.”

It is reported that Dell has been making major changes within the company as growth in its bread-and-butter PC business declines rapidly, according to Clarke in a message sent to all employees titled “Preparing for the road ahead”.

A decline of nearly 30 percent was reported by Dell in its third fiscal quarter of 2023, which ended on Oct. 28, 2022. This was compared to the same period in 2022.

While there have been many questions raised concerning massive layoff round, there are still many that remain unanswered.

For example, where will the layoffs take place within the company? In what ways are structural changes being made? How come Michael Dell, the company’s chairman, CEO, and founder, did not announce the layoffs the company would be undertaking?

Layoffs at Dell

Before diving into those questions, it’s critical to keep in mind that Round Rock, Texas-based Dell Technologies is a market-share leader in storage, servers, and hyperconverged infrastructure, with a long history of being among the top PC players in the world as well.

At the moment, the company has a run rate of approximately $99 billion per year, which is a very high number.

In spite of this, IDC, a research firm, reported a 37 percent decline in shipments in the fourth quarter of 2022. In the third quarter of this year, according to PC data from IDC, the number of Dell PCs sold dropped more than any other PC manufacturer. This includes Lenovo, HP Inc., and Apple.

It is estimated that global shipments were down 28 percent in the fourth quarter of 2022 compared to the fourth quarter of 2021.

A huge layoff in the IT department at Dell is hardly the first time that a technology company has done this. A couple of weeks ago, Microsoft announced that it would lay off 10,000 employees.

Google announced that it would cut 12,000 employees. HP, a fellow PC manufacturer, announced that it would lay off 6,000 employees by the year 2025.

There are six things that channel partners, investors, and Dell employees need to know about the 6,650 layoffs that Dell Technologies announced this week.

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