Advertisment

Dell Layoffs 2023 Announced: Will This Impact Indian Employees?

Dell layoffs 2023 is now being discussed across the Internet as the company has announced its intent to let go of 5 percent of its staff

author-image
DQINDIA Online
New Update
Deloitte layoffs

Dell layoffs 2023 have been announced, and the company will reduce its global workforce by 5 percent. This would mean that roughly 6500 employees would be fired from Dell. According to a Bloomberg report, Jeff Clarke, co-chief operating officer, said that this decision is being taken as the company is suffering due to the existing market conditions, which continues to deteriorate. In its quarter three results, the company had reported that its revenue was down 6% at $24.7 billion.

Advertisment

Why Have Dell Layoffs 2023 Been Announced?

The layoffs have been announced as there is a massive decline in PC shipments pots-pandemic. A recent Gartner report had stated that worldwide shipments of total devices including PCs, tablets and mobile phones are projected to decline 4.4% in 2023, to total 1.7 billion units. Ranjit Atwal, senior director analyst at Gartner, said: “The depressed economic market will continue to dampen demand for devices throughout 2023. In fact, end-user spending on devices is projected to decline 5.1% in 2023.”

Also read - Intel Salary Cut: 25 Percent Reduction in Compensation Announced to Prevent Layoffs in 2023

Advertisment

He further went on to add: “Just as business confidence was beginning to recover after the worst of the pandemic, it has now fallen significantly in most regions. We do not expect relief from inflation and the bottom of the recession to occur until the fourth quarter of 2023.” The report also observed that PC shipments will continue to record the worst decline of all devices segments in 2023. PC shipments are estimated to decline 6.8% in 2023, after a 16% decline in 2022, which means it has declined for two consecutive years.

The Gartner study has also stated that PC inventory levels will return to normal by the second half of 2023 after significantly increasing in 2022. “Inventory levels increased due to vendors overestimating market demand and because of the collapse in consumer confidence and dramatic fall in demand,” said Atwal

Will Dell Layoffs 2023 Impact Indian Employees?

This decision has been announced on a global level, and it is unlikely that employees in India would be impacted. However, tremors may be felt across all regions. Additionally, according to the layoff tracking website layoffs.fyi, the number of employees that have been fired by global IT giants such as Google, Microsoft, Meta and others in India are extremely less when compared to those fired globally.

Advertisment