Dell planning layoff round this week

The “uneven and frustrating” times alluded to by Dell Technologies chief executive officer Michael Dell recently continue for the tech giant.

Dell’s vice-chairman and chief operating officer Jeff Clarke told staff during a quarterly meeting Monday that it’s time to buckle up for more layoffs and that the job cuts won’t be limited to any particular team or division within Dell, Bloomberg reported. The news comes after Clarke told staff Aug. 27 during a Q2 2021 earnings call that Dell – Michael Dell that is – informed the company to anticipate challenging times during the “new normal” created by the pandemic. “This is going to be a marathon, and it’s going to be uneven and frustrating at times,” he said.

“The novelty of the new normal has worn off,” Clarke added.

In a statement to Channel Daily News, Dell Canada said the job reductions are addressing a number of strategic goals.

“Our priority continues to be taking care of our team members, so we can take care of our customers and our business, to ensure they’re healthy and strong for the long-term. We’re also evaluating our business to make sure we have the right number of team members in the right roles and in areas where customers need us most,” the statement reads. “And, we’re addressing our cost structure to make sure we’re as competitive as we should be now and for future opportunities. While we do this type of organizational review regularly, and while it always results in some job loss or restructuring, we recognize that there is nothing routine about today’s environment. We updated our team yesterday with this information so they understand the actions occurring this week. Every decision we’ve made up to this point is to make sure we’re doing what’s best for the long-term health of our company and our team.”

The cuts also come after Dell reported a three per cent decline in sales to $22.73 billion for its second fiscal quarter, which ended July 31.

Dell has made big bets on as-a-service consumption-based models this year to try and weather the storm and is in the process of rolling out as-a-service consumption-based models for its portfolio of PCs, servers, networking, storage, end-user computing and hyperconverged infrastructure offerings.

Bloomberg says the company declined to specify the number of job reductions. Dell had 165,000 employees as of the end of January, according to Forbes.


*This story was updated at 10:30 a.m. Sept. 16 to include a statement from Dell Technologies.

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