Round Rock, September 11: Dell Technologies has informed that the layoffs will continue as it struggles to control the costs amid managing demand and sales of its products. Last month, Dell layoffs were announced, and it was estimated to it had hit over 12,500 global employees amid a restructuring exercise. The latest announcement from the tech giant was introduced amid concerns that the demand for its PCs had not rebounded and that sales of the servers optimised for AI were not as profitable as the other products.

According to a report by Bloomberg, Dell Technologies Inc. will continue reducing its workforce and limiting outside hiring. The tech giant also said it would restrict job reorganisations and implement other actions to keep reducing the overall headcount of employees until the end of February 2025. Samsung India Layoffs: Samsung Electronics To Lay Off Around 9–10% of Its Total Workforce Ahead of Festive Season Amid Poor Demand.

Dell layoffs in June 2024 significantly impacted the employees across the world. The major employees impacted were from the company's sales department. Although it was estimated that the workforce reduction affected more than 12,500 employees, the company did not confirm it. The report mentioned that Dell had to pay severance costs to the employees affected, which was around USD 328 million.

Competitors, including SMC (Super Micro Computer) and HPE (Hewlett Packard Enterprise), have concerned Dell over their profitability. The report mentioned that the AI servers these companies used were sourced from companies like Nvidia. The company's PC business recovery has been sluggish, with fiscal Q2 revenue at $12.4 billion, down 4% year-over-year and slightly below estimates. Consumer PC sales fell 22%, while business PC sales held steady. Bending Spoons Layoffs: Italy-Based App Developer Company To Lay Off 75% of WeTransfer Employees Post Deal; Check Details.

The tech layoffs have worried the employees working in the IT industry as companies keep changing their business restructures and introducing automation. Due to the rising competition in the global tech sectors, companies like Dell have resorted to job cuts and cost reductions to balance their profits and maintain their headcount. 

(The above story first appeared on LatestLY on Sep 11, 2024 05:00 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).