huge layoffs at dell

According to Reuters, Dell Technologies is cutting 5% of its global workforce, or about 6,650 jobs, as it faces a decline in the PC market and prepares for a potential recession.

The company joins a number of US firms, including Goldman Sachs and Alphabet, in laying off workers to navigate the slowdown caused by inflation and rising interest rates. Despite previous cost-cutting measures, such as a hiring freeze and restrictions on travel, co-COO Jeff Clarke stated in a memo that these measures are no longer sufficient. Clarke added that the market conditions are deteriorating with an uncertain future. Dell plans to record the costs related to the job cuts in its fourth quarter ending January.

From Dell's vice-chairman Jeff Clarke:

“What we know is market conditions continue to erode with an uncertain future,” Clarke told employees. “The steps we’ve taken to stay ahead of downturn impacts – which enabled several strong quarters in a row – are no longer enough. We now have to make additional decisions to prepare for the road ahead.”

Despite the waves of tech layoffs, the United States economy and job market has remained incredibly strong.