BENGALURU: Dell has become the latest company to announce firing of employees. On Monday, the tech company said that it will be laying off 5% of its workforce- about 6,650 employees globally, as tech companies have been facing an uncertain global macroeconomic environment for the past few months.
The company did not disclose how many employees in India would be affected. As of January 28, 2022, the company had employed about 1,33,000 people globally, of which 32% were located in the US alone. The company has manufacturing facilities in the US, India, among other countries.
When asked about the layoffs in India, the company in a statement to The New Indian Express said, "Dell continuously assesses our business to ensure we’re set up to deliver the best innovation, value and service to our customers and partners. This is especially important as economic uncertainty has continued. Since June, we paused external hiring and reduced spending to navigate a challenging global environment."
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"We have further opportunity to drive efficiency through department reorganisations, which has resulted in a reduction of team members across the globe. This is a difficult decision that was not made lightly, and we'll support those impacted as they transition to their next opportunity," it added.
In his message to employees, Jeff Clarke, vice chairman and co-chief operating officer of the company said market conditions continue to erode with an uncertain future. The company has already made a series of decisions including a pause on external hiring, limiting travel and reducing outsider services spend to help navigate the challenges.
In the coming weeks, the company will make many changes and some resets. In November 2022, Dell announced its third quarter results- its revenue was down 6% at $24.7 billion and operating income was at $1.8 billion, up 68%.
According to Layoffs.fyi, which tracks layoffs, 292 tech companies have laid off 88,138 employees in 2023 alone. Rival HP in November announced a reduction of 6,000 employees.