Dell PC sales plummet, 6,650 jobs cut

Dell has fired 6,650 people due to the collapse in sales of Desktop PCs and laptops. PC sales have recently collapsed for all major manufacturers, due to global economic conditions, the aftermath of the pandemic and the unnatural increase in prices for the final consumer. Job losses have been substantial across the technology sector.

As explained by the head of Dell, Jeff Clarke, the market continues to erode and there is a need to make ever more drastic decisions.

Dell’s layoffs will result in a profound internal reorganisation, with real resets in various sectors. With the job cut, Dell reaches its lowest in the last six years for the number of employees, marking -39,000 compared to the month in which the pandemic began, i.e. January 2020.

Dell has benefited tremendously from the pandemic, given the increased sales made due to the confinements at home. After the boom ended, the company’s reliance on computer sales (55% of its revenues) took its toll, especially in an economy where consumers’ purchasing power has been completely eroded.

According to market analyst firms Gartner and IDC, Dell’s sales in 2022 fell 16% compared to 2021 and 37% in the last fiscal quarter alone. This is one of the biggest declines among the big PC makers (only Acer did worse).