Dell Technologies is also going to cut jobs, a total of 6,500 jobs will be lost at the manufacturer. The round of layoffs is part of a restructuring of Dell Technologies. With this, the company must prepare for “an uncertain future,” COO Jeff Clarke indicated in an internal memo.
According to the COO’s internal memo, Dell technologies has been suffering from uncertain market conditions for some time. For example, fewer PCs and laptops are being sold, Bloomberg indicates. Dell Technologies has already been anticipating on this uncertainty by implementing a hiring freeze and having employees travel less for work. It is also spending less on hiring outside staff.
According to Clarke, however, the continuing uncertainty requires further measures to be taken. Therefore, the company is implementing a new reorganization so that it can work even better together, reduce complexity, deliver faster and also increase innovation.
Measures
Part of the reorganization includes that global employees will lose their jobs. According to Bloomberg, this involves 6,500 jobs or 5 percent of the total global workforce. With that, we open this week with another round of layoffs in the technology sector. In recent weeks, one round of layoffs after another has been announced. Last week there was a whole list of organizations that will be cutting jobs. New layoffs at SAP, NetApp, Splunk, PayPal, Workday, Hubspot and more.
Other measures announced by COO Jeff Clarke in his memo include the integration of support teams in the datacenter (ISG) and PC and laptop (CSG) divisions, and the realignment of global sales teams. This realignment should level the way the Dell Technologies works, collaborates and shares best practices with its customers and partners globally for increased revenue growth for all parties. Further, within the datacenter (ISG) division, more focus will be placed on those solutions and applications that best help customers and partners.
In line with other tech companies
Dell Technologies’ restructuring and round of layoffs follows many other large tech companies that have recently shed employees. With these reorganizations, tech companies often try to adapt to difficult “marco-economic” conditions.
They also often appear to be making a correction to staffing levels that had increased substantially over the past three years. During the pandemic, many staff were hired to anticipate the potential needs of customers and partners. Now that the pandemic has passed, it appears that this increase in staffing was often unnecessary.
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