Dell Technologies Inc (NYSE: DELL) is in focus this morning after the computer company joined its tech peers and announced layoffs.
Dell to cut 5.0% of its workforce
On Monday, an SEC filing confirmed that the Texas-headquartered firm plans on lowering its headcount by 5.0%.
The announcement follows a continued slowdown in demand for personal computers. In the final quarter of 2022, Dell noted a 37% year-on-year hit to computer shipments. A message from Jeff Clarke – the co-Chief Operating Officer at Dell reads:
What we know is market conditions continue to erode with an uncertain future. The steps we’ve taken to stay ahead of downturn impacts are no longer enough. We now have to make additional decisions to prepare for the road ahead.
Including the price action today, the tech stock is now roughly flat for the year.
Dell to report Q4 results next month
The said layoff will affect roughly 6,650 employees in total. Dell also confirmed that it’s committed to a sales realignment and change the way it integrated support services as well. Clarke added:
Unfortunately, with changes like this, some members of our team will be leaving the company. There’s no tough decision, but one we had to make for our long-term health and success. We’ll be ready when the market rebounds.
Dell Technologies Inc is scheduled to report its Q4 results early next month. Consensus is for it to earn $1.39 a share – well below $1.72 a share it earned in the same quarter last year.
In January, Alphabet Inc also announced a massive layoff to better prepare for the looming recession.
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