Dell axes over 6,000 jobs after PC sales sting

The global PC market plummeted almost 30 per cent in Q4 2022 according to Gartner figures

Dell Technologies has felt the pinch of the deteriorating PC market as it plans to slash its global workforce by 6,650 jobs.

The cuts represent five per cent of its entire employee base as Dell joins the bleak list of vendors who have announced major layoffs in the thousands.

Last week cloud computing group NetApp said it plans to axe about eight per cent of its global workforce.

In January the likes of SAP, IBM, Microsoft, Sophos, Amazon and Salesforce also revealed that significant cuts were on the horizon, citing the economic downturn.

In the latest spate of layoffs, Dell blamed the slump of the global PC market for its cost-cutting measures, which will result in its lowest headcount since 2017, according to Bloomberg.

"Dell continuously assesses our business to ensure we're set up to deliver the best innovation, value and service to our customers and partners. This is especially important as economic uncertainty has continued. Since June, we paused external hiring and reduced spending to navigate a challenging global environment," Dell told CRN.

"We have further opportunity to drive efficiency through department reorganizations, which has resulted in a reduction of team members across the globe. This is a difficult decision that was not made lightly, and we'll support those impacted as they transition to their next opportunity.

"This will impact about 5five per cent of our global workforce. We have about 133,000 team members."

Worldwide PC shipments totaled 65.3 million units in Q42022, a 28.5 per cent drop from the fourth quarter of 2021, said analyst firm Gartner.

This marks the largest quarterly shipment decline since Gartner began tracking the PC market in the mid-1990s.

For the year, PC shipments reached 286.2 million units in 2022, a 16.2 per cent decline from 2021.