Dell cuts jobs of 6000 employees amid slumping sales

Dell cuts jobs of 6000 employees amid slumping sales

Dell plans to reduce its workforce following a period of decreased computer sales and company revenue. Controversial policies regarding remote workers have also been introduced.

Dell announces workforce reduction due to cost-cutting measures Dell announces workforce reduction due to cost-cutting measures

Dell has confirmed reducing its workforce to cut costs. Apart from reducing the workforce, Dell also revealed in a filing that it had limited external hiring. As per Reuters report, Dell had nearly 120,000 employees as of February 2, 2024, which is down from the total 1,26,000 employees it had earlier.

In its filing, Dell has said that it is cutting jobs because not many people have been buying its computers for almost two years. This lack of demand has led to a decrease of 11 per cent in the money the company makes, which was reported in the financial results for the last three months of the year, and these results were announced just last month. So, because they're not selling as many computers, the company is having financial troubles and is letting some of its employees go.

As per the filing, Dell expects its revenue from its client solutions group, which includes PCs, to increase for the whole year. This was announced on Monday. However, in the last three months of the year, this segment's revenue fell by 12 per cent.Even though Dell warned about facing difficulties in the near future, it anticipates that demand for its products will get better, and the prices they can charge will become more competitive in the financial year 2025.

Recently, Dell was caught in the eye of the storm after it announced some obscure policies for the employees working from home. In a memo, Dell informed its remote workers that they can continue working from home but they will not be considered for promotions. Notably, Dell had a hybrid work culture long before Covid struck. They have had the rule for over a decade. However, now the company is implementing strict return-to-office (RTO) policies, which is a clear departure from its previous stance.

Dell informed its employees of a return-to-office mandate, categorizing them as either "hybrid" or "remote" workers. While hybrid employees are required to spend a minimum of three days a week in an approved office, fully remote workers face significant limitations. According to internal documents obtained by Business Insider, remote workers will not be considered for promotion or be allowed to change roles within the company.

Edited By: Puja Mahanta
Published On: Mar 26, 2024