In the midst of a collapse in PC sales, Dell will cut more than 6,500 jobs


© Getty — David Becker

Like Gafam, computer manufacturers are cutting into their payroll. This is the case of Dell, which has decided to part with 6,650 employees, or about 5% of its workforce worldwide, reveals Bloomberg. At the end of this wave of layoffs, the American company will have 126,300 employees, the lowest level since 2017.

This bleeding in the workforce comes in a complicated period for PC manufacturers. The latter are suffering from a market drop following two years of strong growth, 2020 and 2021, marked by a buying fever triggered by the Covid-19 pandemic and repeated confinements. In this context, computer sales had reached their highest level for ten years. But that euphoria is now a thing of the past.

“An Uncertain Future”

If the levels of PC shipments remain above the indicators prior to the health crisis, the players in the sector are reviewing their copy to adapt to this gradual return to normal. While the fourth quarter of 2022 saw a slump in computer shipments, Dell faced the biggest drop among the world’s major manufacturers, down 37%, according to IDC data. Dell drawing nearly 55% of its revenue from its PC sales, the impact on its business is only reinforced. And this while the decline in PC sales is condemned to continue in 2023.

In this context, Dell had adopted several measures in recent months aimed at reducing its costs, such as a hiring freeze. Jeff Clarke, co-director of operations for the Texas group, however, told employees that this was not enough when market conditions “continue to erode with an uncertain future”. A company spokesperson also argued that departmental reorganizations and job cuts were seen as opportunities to improve efficiency, Bloomberg reports.

HP is also reducing its workforce

In addition to Dell, HP has also decided to cut its workforce. Last November, the Californian manufacturer announced the loss of 6,000 jobs over the next three years. At the same time, the multinational intends to diversify its offer in order to no longer rely almost exclusively on computer sales, and thus smooth out losses.

HP would rely on its HP Instant Ink subscription, which allows individuals and businesses to receive ink at home for a few euros per month. An offer that could evolve with the delivery of sheets of paper. HP would also consider new subscription services, which constitute a lever to retain consumers and provide a source of additional income.

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