End of working from home boom costs 6,650 jobs at Dell
Laptop maker Dell is cutting thousands of jobs as the pandemic's working from home boom ends.
The US technology company said it would lay off 6,650 jobs - about 5pc of its workforce - warning that market conditions "continue to erode with an uncertain future".
Dell, which was founded by entrepreneur Michael Dell in 1988 and is valued at around $30bn (£25bn), sells consumer laptops, desktop PCs and monitors, as well as IT software and infrastructure aimed at businesses.
The tech giant enjoyed a surge in revenues and profits during the pandemic as spending on personal computing and IT gadgets soared. But demand for new PC hardware has been falling as businesses call staff back into the office, while consumers are spending less on new gadgets amid the economic slowdown.
Data from analysts Counterpoint showed global PC shipments fell 27.8pc in the final three months of 2022.
Counterpoint added that Dell's market share of global PC shipments had fallen to 16.7pc, its lowest level in more than two years amid the wider slowdown in laptop sales.
Other IT giants have begun cutting staff in response to a slowdown in consumer and business demand for new PCs and IT hardware.
In November, Dell rival HP said it would reduce its headcount by around 6,000 people, or about 12pc of its headcount. IBM, which makes mainframe PCs for businesses, said last month it would cut 3,900 jobs, or about 1.5pc of its people.
Jeff Clarke, Dell's chief operating officer, said in a note to staff: "We've navigated economic downturns before and we've emerged stronger. We will be ready when the market rebounds."
Mr Clarke said Dell needed to go further to cut costs, having already limited travel and perks for employees.
Shares in Dell fell by around a third in 2022 amid a sell-off in technology stocks as the pandemic-fuelled demand for digital technology waned.
Lay-offs in the US hit a two-year high in January, driven by technology giants cutting back on spending after the pandemic.
However, despite more than 100,000 US workers losing their jobs, the economy remains close to effective full employment, with jobless numbers at their lowest in close to half a century.