Dell Technologies Inc. is the latest company to announce job losses, cutting 6,650 posts amid plummeting demand for personal computers. The tech sector has already lost more than 69,300 jobs in 2023.
The U.S. company has operated in Ireland for over 30 years and employs over 5,000 people across its bases in Dublin, Limerick, and Cork. It is not yet clear what impact the cuts will have on its Irish employees.
Dell Technologies vice chair Jeff Clarke said, “market conditions continue to erode with an uncertain future.”
“The steps we’ve taken to stay ahead of downturn impacts – which enabled several strong quarters in a row – are no longer enough,” Clarke said.
After a pandemic-era PC boom, Dell and other hardware makers have seen plunging demand. According to preliminary data from the International Data Corporation, personal computer shipments dropped sharply in the fourth quarter of 2022. Among major companies, Dell saw the most significant decline -- three percent compared with the same period in 2021, according to IDC. Dell generates about 55 percent of its revenue from PCs.
But the company had navigated economic downturns before and “emerged stronger” from them, Clarke stressed in the memo. He added that Dell will “be ready when the market rebounds.”
According to the specialist site Tech. Co, over 69,300 tech employees have lost their jobs since the beginning of January worldwide.