Editor’s Note: This story has been updated, removing Apple’s inclusion among tech companies with layoffs.
AUSTIN (KXAN) – Dell Technologies Inc. will eliminate about 6,650 jobs through layoffs in response to a decrease in demand for PCs, Bloomberg reported.
The layoffs will reduce the Dell workforce by about 5%, putting the company at its lowest employee headcount in six years.
Market conditions “continue to erode with an uncertain future” Co-Chief Operating Officer Jeff Clarke said in a memo to employees, according to a Bloomberg article.
Pausing travel, hiring limits, and Dell’s other cost-cutting measures are no longer enough to combat Dell’s decreasing sales, Clarke said.
According to Bloomberg, Dell generates 55% of its revenue from PCs and saw a 6% sales decline, and has seen a 37% decline in the sales of these personal computers from 2021 to 2022.
Austin and Round Rock are each home to five of Dell’s global offices, and the Austin Business Journal reports Dell as Austin’s second largest employer. Bloomberg reports only one-third of the company’s employees are US-based, and it is still unclear how these layoffs will affect Austin and Round Rock offices.
KXAN reached out to local offices and will update this story when we receive a response.
“We’ve navigated economic downturns before and we’ve emerged stronger,” Clarke wrote in the memo, reported by Bloomberg. “We will be ready when the market rebounds.”
Dell is another technology company in a longer list of large tech companies to layoff workers, including Amazon, Twitter, Meta, and Spotify. Apple has avoided layoffs, according to business insider.