Dell To Lay Off 5 Of Its Workforce Due To Economic Uncertainty

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Dell To Lay Off 5 Of Its Workforce Due To Economic Uncertainty

Dell To Lay Off 5% Of Its Workforce Due To Economic Uncertainty

It seems the trouble with Dell Technologies Inc. & other tech companies is far from over. According to a recent report, Dell Technologies Inc. is going to lay off 5% of its workforce which equals around 6650 jobs.

According to the company, the current market conditions are not good and will actually erode in the coming days. It is this uncertainty about the future which is forcing Dell to take steps like these!

Previous Measures To Cut Costs Were Not Enough

As per the internal memo, the earlier measures to cut costs at Dell were not enough. If we look back, the company has already stopped its hiring process & is also putting limits on travel.

According to one spokesperson of Dell, the recent job cuts and the reorganization of departments will allow them to improve efficiency.

If we look around, all the major companies have collectively cut thousands of jobs in an attempt to reduce costs. Some of the major examples include Microsoft, Amazon, Goldman Sachs, Alphabet, and so on.

The major reason behind these job cuts is a slowdown in consumer demand and an increase in corporate spending. In other words, these companies are trying to reduce their costs as their income is also shrinking!

Dell Technologies is also experiencing a reduction in its revenue as the sales of personal computers & similar hardware is also on the decline. And when coupled with rising costs in terms of salaries and other corporate costs, it all makes sense!

As per the reports, the current layoffs wave in the USA is at 2 years high. And if we look at the technology sector in particular, it is currently at its 2nd highest pace of laying off workers.

It seems that these companies are now trying to reposition themselves ahead of a possible recession later this year. And if the Fed continues with its current policy of rate hikes, the recession will end up taking over the US economy.

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