DELL-US-based tech firm makes moves to reduce costs with 5% of its global workforce. As market conditions continue to erode, Dell is to cut 6,650 jobs in figures. It’s the latest tech firm to reduce costs amid economic uncertainty.
According to sources, Dell told employees that the initial attempts such as hiring freeze and travel curbs weren’t enough. Therefore, the firm decided to avoid any uncertain risks.
Jeff Clarke, Dell’s co-chief operating officer said, ‘’ what we know is market conditions continue to erode with an uncertain future. The steps we’ve taken to stay ahead of downturn impacts… are no longer enough. We now have to make conditional decisions to prepare for the road ahead.’’
Big names in the tech industry with cost-cutting plans
Meanwhile, big names in the tech industry have implemented cost-cutting plans. For example, Microsoft, Facebook owner Meta and Google’s parent Alphabet. Moreover, the biggest online retailer company in the US, Amazon, also announced substantial job cuts.
Senior Investment and market Analyst Susannah Streeter said that rising interest rates-with the UK, USA and European central bank increased borrowing costs- had also hurt the Texas-based business. She adds, “The company has been buffeted by the crosswinds unleashed as the era of cheap money came to an abrupt end and sales dropped following the pandemic surge,”
Furthermore, she said that the shift to virtual ways of working during the crisis caused many companies to bring forward IT purchases, which has affected future budgets. The combination of rising interest rates and increased caution among firms has led to a decrease in PC sales.
According to layoffs. FYI, there have been 88,000 job cuts announced by over 290 tech companies this year. This is a significant increase from the 160,000 cuts announced for all of 2022.
