Dell planning job cuts as PC demand jumps off a cliff
(2023/02/06)
- Reference: 1675702868
- News link: https://www.theregister.co.uk/2023/02/06/dell_job_cuts/
- Source link:
Dell is said to be planning to cut thousands of jobs, potentially as much as 5 percent of its entire workforce, in response to the falling global demand for PCs.
The Texas-based technology giant confirmed there would be layoffs this morning, although it did not specify numbers. Vice chairman and co-chief operating officer Jeff Clarke [1]said in a post today that the company would be "aligning Regional Sales and Dell Technologies Select teams", integrating "support services into ISG and CSG", and shifting ISG engineering "teams and resources to ... priority offerings." He also confirmed: "Unfortunately, with changes like this, some members of our team will be leaving the company."
He added: "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."
[2]
According to Bloomberg, the company is set to lay off about 6,650 of its workers. The newswire cited a memo sent by Clarke to staffers blaming economic conditions which "continue to erode with an uncertain future."
[3]
[4]
Clarke reportedly told workers that previous cost-cutting measures employed, such as putting a hold on new hires and limiting travel, are no longer enough. The layoffs, along with departmental reorganizations, present the company with an opportunity to drive efficiency, he said.
We asked Dell about the job cuts, but the company declined to confirm the number, stating: "We continuously evaluate operations to ensure the right structure is in place to provide the best value and support to partners and customers. This is part of our regular course of business."
[5]
Dell is not be the first tech company to shed workers in the economic downturn. [6]PayPal said last week that it intends to cut about 7 percent of its workforce, or around 2,000 jobs, while [7]IBM announced last month that it intends to lose about 3,900 employees and [8]Amazon is also set to eliminate more than 18,000 jobs.
[9]Everyone's doing it: PayPal sends 2,000 workers packing
[10]NetApp ditches 8% of staff as customers put away wallets
[11]SAP culls 3,000 jobs from CRM business and its results weren't even that bad
[12]Tech job bloodbath comes to IBM, CFO links layoffs to Kyndryl, Watson Health
The slump in demand for PCs has hit many system builders hard, with [13]recent figures from IDC indicating that the number of computers shipped globally in the fourth quarter of 2022 was down by 28.1 percent on the same period a year earlier.
As The Register reported, Lenovo was down 28.5 percent to 15.5 million units, HP saw a fall of 29 percent to 13.2 million, ASUS was down 20.9 percent, and [14]Apple also saw a decline of 2.1 percent to 7.5 million. However, Dell appears to have been worst hit, with a drop of 37.2 percent to 10.8 million units.
This was the fourth straight quarter of decline for the PC industry, with shipments for the full year down by 16.5 percent to 292.3 million, according to IDC.
We may learn more about the layoffs from Dell's next earnings announcement, scheduled for March 2. The [15]previous results in November for the third quarter of its fiscal 2023 saw revenue down 6 percent to $24.7 billion, while the figures for its Client Solutions Group that builds and sells PCs and laptops showed revenue of $13.8 billion, down 17 percent on the same period the previous year. ®
Get our [16]Tech Resources
[1] https://www.dell.com/en-us/blog/preparing-for-the-road-ahead/
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2Y@GGkrchDLNZkdGV@LqVEgAAAEM&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
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[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Y@GGkrchDLNZkdGV@LqVEgAAAEM&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Y@GGkrchDLNZkdGV@LqVEgAAAEM&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[6] https://www.theregister.com/2023/02/01/paypal_job_cuts/
[7] https://www.theregister.com/2023/01/26/ibm_job_cuts/
[8] https://www.theregister.com/2023/01/20/amazon_job_cuts_costs/
[9] https://www.theregister.com/2023/02/01/paypal_job_cuts/
[10] https://www.theregister.com/2023/01/31/netapp_layoffs_8_percent/
[11] https://www.theregister.com/2023/01/26/sap_3000_job_cuts/
[12] https://www.theregister.com/2023/01/26/ibm_job_cuts/
[13] https://www.theregister.com/2023/01/11/pc_sales_slump_to_prepandemic/
[14] https://www.theregister.com/2023/02/03/apple_q1_2023/
[15] https://investors.delltechnologies.com/news-releases/news-release-details/dell-technologies-announces-third-quarter-fiscal-2023-financial
[16] https://whitepapers.theregister.com/
The Texas-based technology giant confirmed there would be layoffs this morning, although it did not specify numbers. Vice chairman and co-chief operating officer Jeff Clarke [1]said in a post today that the company would be "aligning Regional Sales and Dell Technologies Select teams", integrating "support services into ISG and CSG", and shifting ISG engineering "teams and resources to ... priority offerings." He also confirmed: "Unfortunately, with changes like this, some members of our team will be leaving the company."
He added: "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."
[2]
According to Bloomberg, the company is set to lay off about 6,650 of its workers. The newswire cited a memo sent by Clarke to staffers blaming economic conditions which "continue to erode with an uncertain future."
[3]
[4]
Clarke reportedly told workers that previous cost-cutting measures employed, such as putting a hold on new hires and limiting travel, are no longer enough. The layoffs, along with departmental reorganizations, present the company with an opportunity to drive efficiency, he said.
We asked Dell about the job cuts, but the company declined to confirm the number, stating: "We continuously evaluate operations to ensure the right structure is in place to provide the best value and support to partners and customers. This is part of our regular course of business."
[5]
Dell is not be the first tech company to shed workers in the economic downturn. [6]PayPal said last week that it intends to cut about 7 percent of its workforce, or around 2,000 jobs, while [7]IBM announced last month that it intends to lose about 3,900 employees and [8]Amazon is also set to eliminate more than 18,000 jobs.
[9]Everyone's doing it: PayPal sends 2,000 workers packing
[10]NetApp ditches 8% of staff as customers put away wallets
[11]SAP culls 3,000 jobs from CRM business and its results weren't even that bad
[12]Tech job bloodbath comes to IBM, CFO links layoffs to Kyndryl, Watson Health
The slump in demand for PCs has hit many system builders hard, with [13]recent figures from IDC indicating that the number of computers shipped globally in the fourth quarter of 2022 was down by 28.1 percent on the same period a year earlier.
As The Register reported, Lenovo was down 28.5 percent to 15.5 million units, HP saw a fall of 29 percent to 13.2 million, ASUS was down 20.9 percent, and [14]Apple also saw a decline of 2.1 percent to 7.5 million. However, Dell appears to have been worst hit, with a drop of 37.2 percent to 10.8 million units.
This was the fourth straight quarter of decline for the PC industry, with shipments for the full year down by 16.5 percent to 292.3 million, according to IDC.
We may learn more about the layoffs from Dell's next earnings announcement, scheduled for March 2. The [15]previous results in November for the third quarter of its fiscal 2023 saw revenue down 6 percent to $24.7 billion, while the figures for its Client Solutions Group that builds and sells PCs and laptops showed revenue of $13.8 billion, down 17 percent on the same period the previous year. ®
Get our [16]Tech Resources
[1] https://www.dell.com/en-us/blog/preparing-for-the-road-ahead/
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2Y@GGkrchDLNZkdGV@LqVEgAAAEM&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Y@GGkrchDLNZkdGV@LqVEgAAAEM&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Y@GGkrchDLNZkdGV@LqVEgAAAEM&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Y@GGkrchDLNZkdGV@LqVEgAAAEM&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[6] https://www.theregister.com/2023/02/01/paypal_job_cuts/
[7] https://www.theregister.com/2023/01/26/ibm_job_cuts/
[8] https://www.theregister.com/2023/01/20/amazon_job_cuts_costs/
[9] https://www.theregister.com/2023/02/01/paypal_job_cuts/
[10] https://www.theregister.com/2023/01/31/netapp_layoffs_8_percent/
[11] https://www.theregister.com/2023/01/26/sap_3000_job_cuts/
[12] https://www.theregister.com/2023/01/26/ibm_job_cuts/
[13] https://www.theregister.com/2023/01/11/pc_sales_slump_to_prepandemic/
[14] https://www.theregister.com/2023/02/03/apple_q1_2023/
[15] https://investors.delltechnologies.com/news-releases/news-release-details/dell-technologies-announces-third-quarter-fiscal-2023-financial
[16] https://whitepapers.theregister.com/
Hardly original
Anonymous Coward
"Welp, lots of other places doing layoffs, so we'll take advantage of the news cycle headlines and get in our round too. We want to do cuts, but we don't want to stand out and look like we're bad at hiring people and running the company."
Also:
"Hm, my big executive bonus is a bit light this quarter, better pump the stock price with some short-term arbitrary cuts for the financial analysts, even though it's long-term damaging to the company."
"Our employees are getting a little high in average paycheck and tenure, let's see if we can trim and swap for some younger cheaper models."
"*This* will teach 'em to WFH!"
n2ubp
Perhaps Dell would sell more computers if their online site shipping delays for non customized laptop and desktop computers were less than one month?
Dell PC demand is hit especially hard, I assume
pip25
Their laptops have been poor for years now with only a couple of exceptions, with quality and other issues galore. Not buying another one if I can help it.
"upgrades" have flushed the environment
I have a bunch of Dell laptops and they are all working great ... but ever since Windows 8 appeared I have found that work is much easier using the older laptops running Windows 7 than "upgrading" to spend more time waiting for Windows to get started and then make me wait while it downloads upgrades that are going to cause problems. I have a few systems running all of the current versions of Windows because we have to support customers but working is so much better with the older versions and so many customers want support for Windows 7, not "Windows This Week".