Mashable: Demand for computers, formerly booming during the pandemic, has collapsed for Dell and other manufacturers.

Another significant business has announced a large-scale wave of layoffs amid the ongoing tech layoffs. In light of the falling demand for personal computers, Dell has announced that it will be laying off over 6,650 people, making it the latest technology business to do so.

Co-CEO Jeff Clarke stated in a document seen by Bloomberg that the company is facing "increasing loss with an uncertain future" in the market. A representative for the business indicated that this will affect around 5% of Dell's worldwide workforce.

Demand for computers, formerly booming during the pandemic, has collapsed for Dell and other manufacturers. An initial report from market researcher IDC predicts a sharp decline in shipments of personal computers in the final three months of 2022. According to IDC, among the major corporations, Dell experienced the largest loss, at 37 percent compared to the same period in 2021. About 55% of Dell's earnings come from the sale of personal computers.

Former cost-cutting initiatives, such as a freeze on recruiting and restrictions on travel, have been deemed insufficient by Clarke, who informed employees of this. The representative explained that the company sees the impending departmental reorganizations and subsequent layoffs as a chance to increase productivity.

Many of Dell's competitors and industry peers have been hit hard by layoffs in recent months. HP which is also vulnerable to the PC industry announced job cuts of up to 6,000 people in November. Companies like Cisco and IBM have announced layoffs of around 4,000 people.

Following the layoffs, Dell's workforce in Round Rock, Texas, will be at its lowest in at least six years, with around 39,000 fewer workers than in January 2020. In March of 2022, the corporation disclosed that just around one-third of its workforce was located in the United States.

CEO, Clarke reassured his staff that they have weathered economic storms previously and come out stronger. The market's recovery won't catch us off guard because we're preparing for it now.