Dell to Slash Global Workforce to Limit Hiring Amid Employee Reorganization

Dell Inc. is trimming its global workforce, and around 6,000 people may lose their jobs. The American tech firm is carrying out the latest layoffs after changing its regulations for remote staffers.

The job cuts came as Dell experienced low sales for its personal computers. According to Hindustan Times, the company revealed that demand for the devices has slowed for almost two years.

Challenges that Led to Workforce Reduction

The company shared that the slow demand caused its revenue to drop by 11% in its fourth-quarter earnings report in February this year. Moreover, Dell initially expected the net income in its client solutions group (CSG) to increase for the year, but it fell by 12% in Q4 instead.

Then again, the Texas-based tech firm said that demand would improve and its near-term challenges would be controlled since it expects input costs. At any rate, aside from the low sales, the company mentioned that it decided to cut its workforce to reduce costs and as part of its employee reorganization.

In its latest filing with the federal securities exchange, Dell further indicated it is likely to continue the "reduction of its other businesses' net revenue as a result of the change in our commercial relationship with VMware." External hiring of workers will be limited as well amid the employee reshuffle.

Dell's Soars to Record

Meanwhile, Dell surged to a record high in its most recent earnings report. It presented better-than-expected sales and profit, which was said to have been boosted by the demand for information technology tools and devices designed for artificial intelligence (AI) work.

"We have just started to touch the AI opportunities ahead of us, and Dell is uniquely positioned with our broad portfolio to help customers build GenAI solutions that meet performance, cost and security requirements," InfoTechLead quoted Dell's vice chairman and chief operating officer, Jeff Clarke, as saying earlier this month.

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