This represents 5% of its total workforce. The American computer manufacturer Dell Technologies announced on Monday February 6 that it intended to cut around 6,650 jobs, given the collapse in sales.
The company is facing a sharp slowdown in demand. It thus saw its turnover fall by 6% in the third quarter of its staggered 2023 financial year, according to the results published at the end of November, while sales of products (desktops, laptops, workstations) , which represent the bulk of the group’s commercial activity, fell by 10%.
“What we do know is that market conditions continue to erode with an uncertain future”wrote Jeff Clarke, co-chief operating officer of the American company, in a memo sent to employees to explain the decision.
Downsizing in major tech groups
The group, based in Texas, employed around 133,000 people at the end of January, including a third in the United States. The measures taken so far by Dell – pause in external recruitments, limitation of travel expenses, among others – “not enough” to compensate for the decline in demand, justified Jeff Clarke in the memo made public by the group.
The announcement, originally reported by Bloomberg, is the latest in a long line of American companies, particularly in the technology sector, from Alphabet (Google, YouTube) to Meta (Facebook, Instagram, WhatsApp) in to Microsoft, which are cutting their workforce by the thousands to cope with the reversal in demand caused by high inflation and rising interest rates.
According to the specialized site Layoffs.fyi, just over 88,000 tech employees have lost their jobs since the start of 2023 worldwide (this number does not take into account Dell’s announcement on Monday).