Dell stated in a regulatory statement Monday that it planned to lay off around 5% of its workers, the latest example of a big business slashing costs in an uncertain economic climate.
According to CNN, Dell employs approximately 133,000 people. At that level, the 5% cut would affect over 6,500 jobs.
The computing giant claimed a “difficult global economic environment” as the reason for the layoffs. In a letter to staff, Dell’s vice chairman, Jeff Clarke, stated that the company’s existing measures, such as restrictions on employee travel and a halt on external hiring, are insufficient.
“What we know is that market conditions are deteriorating and the future is uncertain,” Clarke warned employees. “The precautions we’ve taken to stay ahead of downturn repercussions, which enabled several strong quarters in a run, are no longer sufficient. We must now make more judgments in order to prepare for the road ahead.”
The move comes as layoffs continue to plague the IT industry. Amazon, Microsoft, Google, and others have all revealed plans to lay off thousands of workers as they adjust to shifting global demand and concerns about an impending recession.
Dell has likewise struggled with decreased demand for personal computers.
According to Gartner, worldwide PC shipments will fall more than 28% in the fourth quarter of 2022 compared to the same period the previous year. This was the most significant quarterly shipment drop since Gartner began tracking the PC industry in the mid-1990s.
According to Gartner, Dell saw a 37% decrease in PC vendor unit shipments during the final three months of 2022 compared to the previous year.