Dell Technologies recently announced plans to lay off 5% of its workforce due to the challenging global economic environment. CBS News reports around 6,600 jobs will be cut by the end of April. The company has about 133,000 employees globally, per its most recent annual report filed in January 2022.
In an effort to reduce costs, the company previously put a pause on external hiring, limited travel, and cut spending on outside services, but more was needed. The company’s Chief Operating Officer, Jeff Clark, informed the employees about the decision in a letter and said that the company had to make difficult decisions to prepare for the future.
The news led to a drop of 3.6% in Dell’s shares on the day it was announced, and its shares are down 31% in the last 12 months. Dell’s net revenue in the most recent quarter was $24.7 billion, a decrease of 6% compared to the previous year. The company’s net income from continuing operations was $241 million, which was 93% lower than $3.6 billion last year.
The layoffs follow several major technology companies cutting jobs, including Alphabet, Amazon, IBM, Meta, Microsoft, and Twitter. According to Layoffs.fyi, approximately 67,000 American tech jobs have been cut in recent months.
