Dell to slash jobs amid Covid-19 downturn

Hardware giant has not specified how many will be let go, or from what division or geographic location
(Image: Dell EMC)

18 September 2020

Dell Technologies announced plans to cut an unspecified number jobs this week, as the infrastructure giant attempts to remain competitive amid the Covid-19 pandemic.

According to a report from Bloomberg, Jeff Clarke, chief operating officer and vice chairman of Dell Technologies, announced the layoffs at a quarterly meeting, Monday. Clarke told staff that the reductions would not be limited to a particular division or team within the company.

“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,” said Dell in a statement released Monday. “And we’re addressing our cost structure to make sure we’re as competitive as we should be now and for future opportunities,” continued the statement. “While we do this type of organisational review regularly, and while it always results in some job loss or restructuring, we recognise that there is nothing routine about today’s environment.”




This comes after Dell reported a 3% decline in sales to $22.73 billion for its second fiscal quarter, which ended 31 July. At the time, Dell declined to provide specific guidance for the rest of the year.

This is the second time in two months that Dell, which boasts a 165,000-strong global team, has confirmed layoffs. In July, the company laid off an unspecified number of employees. This, however, was not in relation to the ongoing pandemic. “We recently made some workforce reductions that reflect decisions made in early 2020 as part of regular evaluations of our business structure, and weren’t related to the pandemic,” said Dell in a statement released in July.

Back in May, Dell said it was cutting costs by freezing pay rises and hiring for the rest of the fiscal year. It also announced that it would discontinue contributions to employees’ 401(k) retirement plans as an additional cost-saving measure.

In August, the PC maker said it had $34.1 billion in core debt, which mainly derived from its 2016 acquisition of EMC Corp.

Meanwhile, VMware, which is 81% owned by Dell, warned that it may reduce pay for remote workers. The software company told employees that should they move away from the Silicon Valley and work remotely from a less expensive location on a permanent basis, their pay may be cut.

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