Technology company cuts approximately 6,000 employees worldwide

Dell Technologies announced in a regulatory filing on Monday that the company made the layoffs as a strategic move to reduce costs, including limiting outside hiring and restructuring its workforce. According to a report from Reuters, the company said it had approximately 120,000 employees as of February 2, 2024, down from approximately 126,000 the previous year, resulting in approximately 6,000 job cuts. .

As reported last month, the layoffs come after nearly two years of weak demand for personal computers, which contributed to an 11% decline in sales in the fourth quarter. There is. Dell also said it expects net revenue for its Client Solutions Group (CSG), which includes its PC division, to increase throughout the year. However, in the fourth quarter, this division’s revenue fell by 12%.

Despite expressing caution about the challenges expected in the near future, Dell remains optimistic about the prospects for improving demand and expects a more competitive pricing environment in fiscal 2025. . Nevertheless, the company acknowledges the expected increase in input costs and points to the possibility of additional costs. Complexities have arisen and “net revenues in other businesses continue to decline as a result of changes in our commercial relationship with VMware.”

Dell bought back shares related to its stake in software maker VMware, facilitating its return to the market in 2018. Last year, chipmaker Broadcom completed its $69 billion acquisition of VMware.

Dell implemented significant layoffs in the past year, eliminating 6,650 positions. This strategic move comes as the company prepares for a possible economic downturn and sees demand for personal computers decline.

Previously, Dell reportedly told remote workers that they could continue their work-from-home arrangements but were not eligible for promotions. This marks a shift from the previously adopted hybrid work culture that was in place before the coronavirus pandemic began. The company currently has a strict return-to-office (RTO) policy, classifying employees as either “hybrid” or “remote” workers and informing them of their mandatory return to the office.

Also read: Barclays cuts: Hundreds of investment banking employees to be laid off, says report

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