![]() We’ll be more competitive, more focused and find a new level of operational performance. “We’ll prevail as we always do, for our customers, partners and each other. “Remember, we’ve navigated economic downturns before and we’ve emerged stronger,’ he wrote. And, as of the end of October, Dell’s sales through three quarters was up 6 percent year over year.Ĭlarke told the remaining employees that despite the layoff of 6,650 of their co-workers, he is confident in the company’s future. Research firm IDC also reported that Dell’s PC shipments fell 37 percent during the holiday quarter.ĭell’s infrastructure business offset those pressures with stronger sales. ![]() Please know we’ll support those impacted as they transition to their next opportunities.” Slow PC Sales Despite Record Revenueĭell posted its highest revenue numbers in 2022, with global sales topping $101 billion, but slow PC sales hit earnings in the most recent quarter as Dell’s revenue shrank 6 percent against the previous year. “There is no tougher decision, but one we had to make for our long-term health and success. “Unfortunately, with changes like this, some members of our team will be leaving the company,” Clarke wrote. Within the Infrastructure Support Group, which handles servers, storage and Apex products, Dell has “shifted teams and resources to the priority offerings that will best serve our customers and partner needs.” He wrote that Dell will now be able to “develop more integrated solutions more quickly.” Clarke wrote that the changes will keep the cost of services closer to the “control points” for those costs in engineering and product design. ![]() Support teams will realign along similar lines.ĭell services will integrate support service from the Infrastructure Support Group and Commercial Group to “tighten the feedback loop” between its customers, the support teams and the product teams. Global Sales Organization Impactedĭell is making changes to the global sales organization, where it will align regional sales and Dell Technologies Select teams to cover customer and partner relationships worldwide. The approximately 133,000-employee company expects to recognize expenses associated with these actions in the fourth fiscal quarter of fiscal 2023. Securities and Exchange Commission the job cuts will result in a reduction of approximately 5 percent of Dell’s workforce. You’ll hear from your leader soon about any changes that may impact your team.”ĭell told the U.S. They’ll help us focus on purpose-driven work and be in the best position to make the greatest difference for customers, Dell Technologies and each other. “In the coming days and weeks, you’ll begin to see a series of changes, some resets, across the organization to better structure us for the future, to better collaborate, reduce complexity, increase speed and to accelerate innovation. We now have to make additional decisions to prepare for the road ahead,” Clarke wrote. “Steps we’ve taken to stay ahead of the downturn impacts … are no longer enough. Jeff Clarke, Dell’s vice chairman and co-COO, announced the 6,650 layoffs in a memo Monday that outlined how the company had tried to stave off job cuts with hiring freezes, travel restrictions and expense reductions that ultimately failed to turn conditions to Dell’s advantage. Dell Technologies is reorganizing key departments and cutting staff as it hopes to mitigate the hit from a global economic downturn that has ravaged other high-profile technology vendors with thousands of job cuts so far this year.
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