Dell is cutting jobs due to a slump in the personal computer market and economic uncertainty.
Why it matters
Dell's decision to cut jobs is significant as it highlights the impact of the pandemic on the personal computer market and the wider economy. The move is part of a trend of cost-cutting measures by US tech firms to ride out a demand downturn wrought by high inflation and rising interest rates.
What the papers say
All sources report on Dell's decision to cut jobs due to a slump in the personal computer market and economic uncertainty. They all quote Dell's co-chief operating officer, Jeff Clarke, who said that market conditions continue to erode with an uncertain future. The sources also report on Dell's previous cost-cutting measures, such as a hiring pause and limits on travel, which were not enough to address the decline in demand for PCs and laptops. The sources differ in their coverage of the number of jobs being cut and the impact on Dell's workforce.
How we got here
Dell had already rolled out cost-cutting moves such as a hiring pause and limits on travel as it dealt with a post-pandemic collapse in PC sales, which account more than half of its revenue. The layoffs are expected to affect about 5% of its global workforce. The move aligns Dell with a raft of companies from Goldman Sachs Group to Alphabet that have laid off thousands this year to ride out a demand downturn wrought by high inflation and rising interest rates.
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