Dell plans to cut 6,650 jobs, or around five percent of its global workforce.

The job losses come as tech companies lay off tens of thousands of employees, despite the wider US economy adding 517,000 jobs in January as the unemployment rate drops.

– Sebastian Moss

Dell's layoffs follow PC sales dropping dramatically after a pandemic high that saw it post its largest-ever revenue numbers. Rival PC maker HP cut 6,000 staff back in November.

The company is also the world's largest manufacturer of servers, battling for the top spot with rival HPE (which announced three years of layoffs back in 2020).

In its last earnings call at the end of November, Dell reported "softening unit demand in servers somewhat offset by higher average selling prices given richer configurations driven by customers running more complex workloads," according to company CFO Tom Sweet.

Dell had warned of the slowing server growth the quarter earlier, but co-chief operating officer Chuck Whitten admitted that "it was probably a little bit worse than we anticipated at the time."

The company's next earnings report is set for March 2nd.

Dell did not disclose which divisions will be worst impacted by the layoffs, but announced that it would make several organizational changes.

The company is revamping its sales organization to align regional sales and Dell Technologies Select teams toward worldwide partner relationships.

Its Infrastructure Support Group and Commercial Group will see support and product teams more tightly integrated, while the server and storage support group will see teams shift and resources moved to just focus on priority projects.

The past few months have seen Amazon, Alphabet (Google), IBM, Lam Research, Micron, Meta, and others announce layoffs.

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