New Delhi, March 26: Dell, a renowned technology giant, has recently made an announcement to lay off its workforce. The company announced layoffs by cutting approximately 6,000 jobs globally. This decision comes after Dell implemented a rule change for remote employees, signalling a shift in the company's operational strategy. The layoffs are a response to a prolonged period of decreased demand for personal computers for approximately two years.
As per a report of Hindustan Times, Dell's job cuts is expected to reduce its global workforce by about 6,000 jobs as a part of an initiative to cut costs for a decrease in the PC market. The company, which had a workforce of around 1,26,000 a year earlier, saw its numbers decrease to 1,20,000 by February 2024. These job cuts from the company might be its attempt to realign itself with technology advancement and economic strains that have caused decreasing sales of personal computers. Ericsson Layoffs: Telecommunication Company Announces Job Cuts, To Reduce Workforce by 1,200 Positions in Sweden.
Dell's client solutions group, which deals with personal computers, reported an unexpected 12 percent drop in net revenue for the fourth quarter of 2023. This was contrary to the company's initial projections of growth over the entire year. Furthermore, Dell anticipates continued revenue reductions from other business segments due to changes in its commercial relationship with VMware. Dell's recent workforce reductions might for a reason of its prolonged period of reduced demand in the company's personal computers for almost two years, which has lead to an 11 percent decline in fourth-quarter revenue. Apple Layoffs 2024: As Tech Giant Cancels Its In-House MicroLED Display Project for Apple Watches, Dozens of Roles Might Be Eliminated, Says Report.
The layoffs from Dell also follows a previous round of job cuts in 2023, where Dell jad eliminated 6,650 positions in anticipation of a potential recession in the PC market. The company's recent policy changes also reflect a new approach to remote work. Dell has introduced a return-to-office mandate, categorising employees as either "hybrid" or "remote."
(The above story first appeared on LatestLY on Mar 26, 2024 10:26 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).