Dell Technologies is headquartered in Round Rock, near Austin.
(Photo by Brandon Bell/Getty Images)
Dallas Business Journal
By ABJ staff
Dell Technologies Inc. will cut about 6,650 jobs — about 5% of its workforce — after a decrease in demand for personal computers.
Market conditions "continue to erode with an uncertain future," Co-Chief Operating Officer Jeff Clarke said in a memo to employees.
"In the coming days and weeks, you’ll begin to see a series of changes – some resets – across the organization to better structure us for the future, to better collaborate, reduce complexity, increase speed and to accelerate innovation," Clarke wrote. "They’ll help us focus on purpose-driven work and be in the best position to make the greatest difference for customers, Dell Technologies and each other. You’ll hear from your leader soon about any changes that may impact your team."
According to Bloomberg, Dell generates 55% of its revenue from PCs and saw a 37% decline in those sales from 2021 to 2022. In recent years the company has worked hard to diversify its revenue streams with
Dell (NYSE: DELL), which is based in the Austin suburb Round Rock, employs about 13,000 people in Central Texas.
“Unfortunately, with changes like this, some members of our team will be leaving the company. There is no tougher decision, but one we had to make for our long-term health and success. Please know we’ll support those impacted as they transition to their next opportunities,” Clarke told employees.
He added: “Remember, we’ve navigated economic downturns before and we’ve emerged stronger. We’ll prevail as we always do, for our customers, partners and each other. We’ll be more competitive, more focused and find a new level of operational performance. We will be ready when the market rebounds.”
The cuts at Dell follow layoffs at other tech behemoths such as Amazon.com Inc., Google parent Alphabet Inc., Microsoft Corp. and Facebook parent Meta Platforms Inc.