At a time when around 50,000 employees have already been laid off in the tech industry this year so far, including those done by Microsoft, Google and Amazon, another tech giant has conducted mass layoffs.
Dell Becomes Latest Tech Giant To Do Layoffs, Fires 6,000 Employees
Dell layoff/dell
In a filing on Monday, Dell Technologies stated that it had reduced its workforce as part of a larger cost-cutting initiative that also included restricting external hiring and employee reorganizations. It employed roughly 120,000 people as of February 2, 2024, compared to roughly 126,000 a year earlier, implying a layoff of 6,000 employees over the last year.
The company announced layoffs this month in response to an 11% decline in revenue from its fourth-quarter earnings, which was partially caused by the weak demand for its personal computers for almost two years.
Amid the 6,000 layoffs Dell stated on Monday that it anticipates net revenue growth in its client solutions group (CSG), which houses PCs, for the full year, as per Reuters report. The fourth quarter saw a 12% decline in the segment’s revenue.
Although Dell issued a warning about potential difficulties in the near future, Dell anticipates stronger demand and a more competitive pricing environment in FY 2025. The business did note that there will probably be “continuous reduction of our other businesses’ net revenue as a result of the change in our commercial relationship with VMware” and that it expects input costs to increase.
In order to prepare for its resurgence in the market in 2018, Dell repurchased shares related to its ownership of software company VMware. The $69 billion acquisition of VMware by chipmaker Broadcom was completed last year.
As the market for personal computers declined and Dell prepared for a possible recession, the company laid off 6,650 employees last year.
Also Read: Mark Zuckerberg Explains Why Tech Layoffs Have Happened In 2024
Microsoft & Google Among Big Companies That Have Laid Off Employees In 2024
layoff/shutterstock
Google has already laid off about 1,000 employees this year, after firing around 12,000 employees in 2023. On the other hand, Microsoft has fired 1900 employees in 2024.Germany based software giant SAP laid off about 8,000 employees this year. Many other tech giants have laid off employees in 2024, with the total already going past 50,000 this year so far.
For the latest and more interesting financial news, keep reading Indiatimes Worth. Click here
