Tech layoffs 2023: Dell to lay off 6,500 employees, cut 5% of its global workforce amid 'uncertain future'

Tech layoffs: Dell Technologies Inc became the latest tech company to announce layoffs. It has said that it is planning to eliminate about 6,650 jobs which is about 5 per cent of its total global workforce. According to a report by Bloomberg, Dell’s Co-Chief Operating Officer, Jeff Clarke claimed that the company is facing tough market conditions with an uncertain future.

Clarke said, "The company is experiencing market conditions that continue to erode with an uncertain future."

"We’ve navigated economic downturns before and we've emerged stronger," Clarke wrote in his note to employees. "We will be ready when the market rebounds." The company had announced a similar layoff in 2020 when the Covid-19 pandemic had hit."

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The announcement by Dell adds it to the growing list of tech companies like Google, Amazon, Meta, and Twitter that have been forced to make a similarly tough decision due to the economic impact of the pandemic. The tech sector which was once considered the most reliable source of employment has now been stuck in troubled waters. Even big-tech companies are now grappling with the balancing act of cost-cutting measures with the need to remain competitive.

Industry analyst International Data Corporation (IDC) said preliminary data show personal computer shipments dropped sharply in the fourth quarter of 2022. Among major companies, Dell saw the largest decline with 37 per cent as compared with the same period in 2021, according to IDC. Dell generates about 55 per cent of its revenue from PCs.

Google, Amazon, HP, and Cisco layoffs

Earlier in November, Dell’s rival PC brand, HP also announced that it will be laying off around 6,000 employees over the next three years. HP also acknowledged that the fall in PC demand was the primary reason for taking this step. Cisco Systems Inc. and International Business Machines Corp. had also said that they would eliminate about 4,000 workers each.

The tech sector announced 97,171 job cuts in the year 2022, which is up from 649 per cent compared to the previous year.

Google also laid off 12,000 employees in January and Amazon decided to lay off 18,00 employees instead of the previous estimates of 10,000. These layoffs are hurting migrants even more as popular pathways like H1B visas in the US need an employer to stay relevant. The fired employees get a grace period of 60 days to either apply via another employer or leave the country.