Dell announces 5% cut in headcount

Similar measures have already been taken by the giants Microsoft, Meta – owner of Facebook –, Alphabet – parent company Google –, Amazon and the social network Twitter, as the industry prepares for a possible recession.

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The layoffs come after a huge wave of hiring during the coronavirus pandemic, when companies sought to serve those who needed to use the Internet to work, study, or have fun.

But “market conditions continued to deteriorate with an uncertain future,” Dell vice president Jeff Clarke said on Monday.

“The steps taken to anticipate the effects of the economic slowdown – which allowed several strong quarters in a row – are no longer sufficient,” he added.

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A company headquartered in Round Rock, Texas (south), Dell had 133 employees at the beginning of last year, almost a third of them in the United States.

Dell's revenue fell 6% in the third quarter of fiscal 2023, according to results released in late November. The sale of products such as computers, which is the majority of its revenue, fell 10%.

The group's directors attributed these results to lower demand in the United States and the rest of the world, due to inflation and high interest rates.

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The specialized website layoffs.fyi estimated that, not counting Dell, around 88 employees in the technology sector were unemployed in January, worldwide.

(With AFP)