Dell
DELL -0.42%
Technologies Inc. said it is cutting about 5% of its workforce, the latest technology company adding to a wave of layoffs as interest rates rise and financial conditions tighten.
The cuts would amount to some 6,600 jobs, based on the 133,000 total workers that the company reported having in early 2022, its most recent disclosed figure.
“Market conditions continue to erode with an uncertain future,”
Jeff Clarke,
Dell’s co-chief operating officer, said Monday in a memo to employees. He said the company had already paused hiring, limited employee travel and reduced spending on outside services. Those steps, he said, “are no longer enough.”
Dell is taking steps to reorganize its sales, customer-support, product-development and engineering teams, Mr. Clarke said.
“We’ve navigated economic downturns before and we’ve emerged stronger,” he said. “We will be ready when the market rebounds.”
As of Jan. 28, 2022, Dell had about 133,000 employees, according to its last annual report. That is less than the 165,000 employees that the company said it had in early 2020, before the company spun off its stake in cloud-software company VMware Inc. As of Jan. 28, 2020, 31,000 of the company’s staff were employees of
VMware.
Dell is the latest large U.S. employer to trim its staff as companies respond to widespread inflation, rising interest rates and the normalization of pandemic trends. Various companies have laid off thousands of employees in a round that was led by large technology companies, including
Microsoft Corp.
and
Amazon.com Inc.
Large companies from other sectors have made similar moves recently, with
FedEx Corp.
,
3M Co.
and
Dow Inc.
all announcing layoffs in recent weeks.
Write to Will Feuer at [email protected]
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