Dell Technologies Inc is one of the largest manufacturers of computers and computing peripherals. The company, like many others, is battling the downturn in the consumer tech market and is bracing itself for the recession that some say is already here.
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Experts believe the recession has been created by high inflation, rising interest rates, and world political conflicts. Dell Technologies had already tried to mitigate the impact it would see by limiting travel and pausing any new hires. We know that travel was cut from Dell’s budget due to them not having the same significant presence at CES 2023.
According to Reuters, co-Chief Operating Officer Jeff Clarke wrote in a memo to employees, “those moves are no longer enough.”
“What we know is market conditions continue to erode with an uncertain future,” Clarke said. Dell expects to book costs related to the layoffs in its fiscal fourth quarter, which ends in January.
Adding to this news is HP is also looking to cut 6,000 jobs as they and Dell Technologies have seen declining PC and tablet sales. During the COVID “remote work” era, the demand was high, and now that people are returning to work, the market has dropped.
“It was only a matter of time before the wave of tech layoffs reached Dell’s shores, given how sensitive the company is to both consumer and corporate confidence,” said Susannah Streeter, markets analyst, Hargreaves Lansdown.
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