The company – which employs around 5,000 people in Ireland – said market conditions have created an ‘uncertain future’ and previous measures have not been sufficient.
Dell Technologies has become the latest tech company to announce job cuts as part of a restructuring process across the organisation.
The company plans to eliminate around 6,650 jobs, or roughly 5pc of its total workforce worldwide, according to multiple reports.
The cuts come amid a global slump in PC sales. According to the International Data Corporation (IDC), global shipments for traditional PCs were at 67.2m in the fourth quarter of 2022, down 28pc from the previous year.
Dell employs around 5,000 people in Ireland through its sites in Dublin, Cork and Limerick. It is currently unclear how many of these jobs will be impacted by the cuts.
In a memo to staff, Dell vice-chair and co-chief operating officer Jeff Clarke said market conditions “continue to erode with an uncertain future”.
Clarke said previous steps to stay ahead of the economic downturn “are no longer enough”, so Dell is being restructured in various ways to become more competitive and to improve operational performance.
For example, the company plans to integrate its support services into two of its divisions, the infrastructure solution group (ISG) and client solution group, in order to “tighten the feedback loop between customers, support and our product teams”.
Dell also plans to have its ISG engineers shift its focus to “priority offerings” for customers. This division offers network, server and storage services.
“Unfortunately, with changes like this, some members of our team will be leaving the company,” Clarke said. “There is no tougher decision, but one we had to make for our long-term health and success. Please know we’ll support those impacted as they transition to their next opportunities.”
Clarke said the impacted teams will hear from their relevant leaders within the organisation “soon”.
Dell is the latest in a long line of tech companies that have announced job cuts in recent months, as global recession fears continue to loom.
Last week, PayPal revealed plans to cut 2,000 jobs, roughly 7pc of its global workforce, due to the “challenging macro-environment”. HubSpot and Workday also announced job cuts at around the same time.
Intel has also been impacted by the slump in PC sales, with plans to “right-size the organisation” as part of a cost-cutting strategy.
In January alone, tech companies including Microsoft, Alphabet, SAP, IBM, Spotify, Amazon and Salesforce all confirmed plans to reduce their staff numbers.
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