Dell says even more job cuts could come soon

Date:
Wed, 11 Sep 2024 13:01:00 +0000

Description:
Dell is selling fewer PCs and plans to focus on AI servers, which means more job cuts could be coming soon.

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Dell has confirmed plans to continue headcount reductions into the rest of
its financial year as it continues to battle with dwindling PC sales and a revised business plan.

A report from Bloomberg claims the company confirmed it would action
continued reduction in our overall headcount via hiring limitations, internal restructuring and other actions.

Efforts to boost margins come several months after the company mounted pressure on hybrid workers to return to the office in a bid to boost productivity. Dell is planning more workforce reductions

The news comes after several impactful rounds of layoffs carried out at the company, including 6,600 workers at the beginning of 2023 and a further 6,000 workers at the start of 2024. A few months later, reports started to
circulate that Dell was considering lying off another 12,000 workers a
number that was not proven.

Known for its consumer and business PCs , Dell has been one of many affected by poor PC sales in the years following the pandemic.

According to Canalys figures for the three months ending June 30 2024, Dells market share dropped by 2.4% to 16%, positioning it in third place behind HP and Lenovo. While global PC shipments showed signs of recovery in the back half of 2023, sales dropped into 2024 and annual growth rates have almost flatlined.

Windows 10s upcoming ended support will likely cause a temporary boost to sales, but Dell is leaning more on trends in artificial intelligence , where it hopes its high-end servers will boost revenue.

In its most recent quarter, the company managed to boost revenue by 9% to $25.0 billion, despite its Client Solutions Group business the one responsible for laptops and desktops reporting a 4% drop in revenue to $12.4 billion.

Dell said: We remain committed to disciplined cost management in coordination with our ongoing business transformation initiatives and will continue to
take certain measures to reduce costs.

TechRadar Pro has asked the company for more information regarding its plans to reduce its workforce, but we did not receive a response. More from TechRadar Pro Dell prepares even more layoffs in latest large-scale job cuts These are the best job sites and best recruitment platforms Fancy an upgrade? Check out the best business laptops



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Link to news story: https://www.techradar.com/pro/dell-says-even-more-job-cuts-could-come-soon


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