Dell Cuts 6,650 Jobs the Same Day It Appoints New Asia Pacific and Japan President
Dell is making major internal changes as it faces cratering demand for computer hardware.
Bloomberg reports the tech giant is ramping up cost-cutting measures by eliminating 6,650 jobs, equating to about 5% of its global workforce. The move would reportedly reduce the company's headcount to its lowest in at least six years – 39,000 workers less than in January 2020.
Dell Co-Chief Operating Officer Jeff Clarke in a written memo cites unfavourable market conditions and fears of economic uncertainty as among the factors that led the company to commence job cuts. He also said that previous cost-cutting measures, including a hiring freeze and limits on travel, weren’t cutting it. The company believes the department reorganisations and reduced headcount can drive efficiency as it continues to navigate a challenging global environment.
Dell saw a sharp downturn in personal computer shipments in Q4 2022, dropping 37% compared to the same period of the previous year, according to the latest data from industry analyst Canalys. The company's Chromebooks didn't fare any better, with shipments dropping -25.3% in the year's final quarter. About 55% of Dell's revenue comes from PC sales.
Even Dell's competitors weren't spared from the slow computer market as they too have been forced to cut jobs. HP, for example, announced in November last year it was letting go of no less than 6,000 workers. Cisco Systems and International Business Machines each sacked about 4,000 workers. In total, 97,171 jobs were cut in 2022, up a whopping 649% compared to the previous year.
"We have navigated economic downturns before and we have emerged stronger," said Mr Clarke. "We will be ready when the market rebounds."
Dell's announcement of the job cuts came on the same day it appointed Peter Marrs as President of Asia Pacific and Japan (APJ). In his new role, Mr Marrs would be overseeing the company's operations in Australia, New Zealand, India, Japan, Korea and Southeast Asia. He succeeds outgoing executive Amit Midha and now reports to John Byrne, President of Sales, Global Theatres and Dell Technologies Select.
"The opportunities in APJ are immense and I’m thrilled to lead Dell business in the region," said Mr Marrs. "We have a talented team, strong portfolio of solutions and a culture that fosters innovation."
Dell is reportedly eliminating 6,650 jobs, equating to about 5% of its global workforce, bringing its headcount to its lowest in at least six years – 39,000 workers less than in January 2020.
Co-Chief Operating Officer Jeff Clarke said the company tried other cost-cutting measures, including a hiring freeze and limits on travel, before deciding to commence job cuts.
The tech giant saw a sharp downturn in personal computer shipments in Q4 2022, dropping 37% compared to the same period of the previous year.
Dell's announcement of the job cuts came on the same day it appointed Peter Marrs as President of Asia Pacific and Japan.