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According to the March 2022 filing, only about one-third of Dell’s employees work in the United States.

Dell Technologies, facing slumping demand for personal computers, will cut about 6,650 jobs, becoming the latest technology company to announce thousands of layoffs.

Jeff Clark, the company’s co-chief operating officer, wrote in a memo seen by Bloomberg that the company was experiencing market conditions that “continue to be eroded by an uncertain future.” The layoffs represent about 5% of Dell’s global workforce, according to a company spokesman.

After the PC boom of the pandemic era, Dell and other hardware makers have seen a sharp drop in demand. Industry analyst IDC said preliminary data showed a sharp drop in PC shipments in the fourth quarter of 2022. Among major companies, Dell saw the biggest decline, down 37% compared to the same period in 2021. About 55% of Dell’s revenue comes from PCs.

Clark told employees that previous cost-cutting measures, including a hiring halt and travel restrictions, were no longer enough. The spokesman said the departmental reorganization and job cuts were seen as an opportunity to improve efficiency.

Layoffs have hit the tech industry hard in recent months, including many of Dell’s peers and competitors. Hewlett-Packard, in the PC market, announced in November that it would cut as many as 6,000 jobs. Cisco Systems Inc. and International Business Machines Corp. both said they would cut about 4,000 jobs. The tech industry announced 97,171 job cuts in 2022, a 649% increase from the previous year, according to consultancy Challenger, Gray & Christmas Inc.

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The layoffs will bring Round Rock, Texas-based Dell’s headcount to lowest level in at least six years — about 39,000 fewer than in January 2020. Submitted March 2022.

Dell reported a 6 percent drop in sales for the quarter ended Oct. 28, and revenue forecast for the quarter came in below analysts’ expectations, saying customers were reducing purchases of information technology. The company is expected to provide further information on the financial impact of the layoffs when it reports fiscal fourth-quarter results on March 2.

“We’ve weathered the downturn before and come out stronger,” Clark wrote in a note to staff. “When the market bounces back, we’ll be ready.”

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By Rebecca French

Rebecca French writes books about Technology and smartwatches. Her books have received starred reviews in Technology Shout, Publishers Weekly, Library Journal, and Booklist. She is a New York Times and a USA Today Bestseller...