Dell seals lips on predicted UK layoff impact

Twenty to 30 per cent staff reduction predicted globally although sales volumes may be rising

Dell has refused to discuss the effect of a predicted restructure in the UK although a 20 to 30 per cent staff cut has been forecast worldwide.

Media reports suggest that a significant global restructure of the vendor's operations involving a considerable headcount reduction is imminent.

ChannelWeb contacted Dell for information on whether the UK will be affected and how many layoffs can be expected locally, but its spokespeople declined to comment specifically.

Instead, the vendor issued a statement: "Dell continuously evaluates and implements opportunities to improve our operational effectiveness and allocate our resources. When necessary, we'll continue to make tough decisions to help ensure our long-term success – some of these decisions may affect our workforce."

It hastened to add that Dell is "committed" to further developing its online, direct and channel partner strategies and business. "We are investing in sales coverage and training," it said.

News reports around the world have suggested that plummeting PC sales statistics have made further belt-tightening necessary at Dell. Redundancies are predicted from a range of its offices globally, with a larger percentage being slashed from EMEA.

August quarterly figures saw Dell's overall profits fall 72 per cent, from $732m (£444m) to $204m, on flat revenue of $14bn. That was at the time of the takeover bid and debate about whether or not the firm should go private.

However, according to Gartner's preliminary PC market figures against a backdrop of seven consecutive quarterly global declines, the Texan company's PC sales rose both in EMEA and around the world year on year in the three months ending December 2013.

Dell's PC category sales expanded 6.2 per cent worldwide in unit terms from Q4 2012 to Q4 2013, Gartner found. Within EMEA, Dell sales held steady, rising 0.1 per cent.

Most vendors saw a decline both in EMEA and globally – except for Lenovo, which enjoyed an impressive 23.7 per cent and 2.1 per cent boost to its sales volumes in EMEA and worldwide respectively compared with the year-ago quarter.

Dell's enterprise solutions, servers and software divisions are also said to be expanding, according to its Q3 2013 report.

Isabelle Durand, principal research analyst at Gartner, noted today that PC shipments in EMEA overall rose quarter on quarter in Q4, by 17.7 per cent in unit terms.

"This confirms the ongoing transition in the market, but it may also signal that we are reaching the end of a period of readjustment in EMEA that started two years ago," she said.

Worldwide, 315.9m PCs were shipped in Q4 by all vendors – 10 per cent down in unit terms from 2012. EMEA PC shipments from all vendors totalled 25.8m units in Q4 – a 6.7 per cent decline from the same period last year.

Lenovo moved into the top vendor spot overall, passing HP, although HP kept its lead in EMEA. Dell retained its third-place position both worldwide and in EMEA when it came to sales volumes, Gartner said.