Dell has confirmed plans to continue headcount reductions into the rest of its financial year as it continues to battle with dwindling PC sales and a revised business plan.
A report from Bloomberg claims the company confirmed it would action “continued reduction in our overall headcount” via hiring limitations, internal restructuring and other actions.
Efforts to boost margins come several months after the company mounted pressure on hybrid workers to return to the office in a bid to boost productivity.
Dell is planning more workforce reductions
The news comes after several impactful rounds of layoffs carried out at the company, including 6,600 workers at the beginning of 2023 and a further 6,000 workers at the start of 2024. A few months later, reports started to circulate that Dell was considering lying off another 12,000 workers – a number that was not proven.
Known for its consumer and business PCs, Dell has been one of many affected by poor PC sales in the years following the pandemic.
According to Canalys figures for the three months ending June 30 2024, Dell’s market share dropped by 2.4% to 16%, positioning it in third place behind HP and Lenovo. While global PC shipments showed signs of recovery in the back half of 2023, sales dropped into 2024 and annual growth rates have almost flatlined.
Windows 10’s upcoming ended support will likely cause a temporary boost to sales, but Dell is leaning more on trends in artificial intelligence, where it hopes its high-end servers will boost revenue.
In its most recent quarter, the company managed to boost revenue by 9% to $25.0 billion, despite its Client Solutions Group business – the one responsible for laptops and desktops – reporting a 4% drop in revenue to $12.4 billion.
Dell said: “We remain committed to disciplined cost management in coordination with our ongoing business transformation initiatives and will continue to take certain measures to reduce costs.”
Dell said in a statement to TechRadar Pro:
“Through a reorganization of our go-to-market teams and an ongoing series of actions, we are becoming a leaner company. We are combining teams and prioritizing where we invest across the company. We continually evolve our business so we’re set up to deliver the best innovation, value and service to our customers and partners.”
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