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Jobs bloodbath continues as Dell to lay off 6 650

Samuel Mungadze
By Samuel Mungadze, Africa editor
Johannesburg, 06 Feb 2023

More tech jobs will be lost this year, as Dell Technologies announced today it will eliminate about 6 650 jobs, or about 5% of its global workforce.

Bloomberg News quotes Dell co-COO Jeff Clarke as saying the layoffs are on the cards, as the company is experiencing market conditions that “continue to erode with an uncertain future”.

According to Bloomberg, an internal memo issued by Clarke says previous cost-cutting measures, including a pause on hiring and limits on travel, are no longer enough.

The jobs annihilation in the tech sector is increasing, as more companies trim their workforce at an unprecedented rate.

Last week, PayPal joined the growing list of companies that are cutting jobs, saying 7%, or 2 000 workers, will be let go due to the tough macro-economic environment.

German software giant SAP is also reducing staff by approximately 2.5%, which will affect 3 000 employees. SAP expects to spend over R5 billion for the restructuring exercise, as the company seeks to focus on strategic growth areas by aligning its operating models.

Naspers and its Amsterdam-listed Prosus unit revealed recently they will shrink their workforce by 30%.

Computing giant IBM also announced it is looking to lay off 3 900 employees. SA-born global crypto-currency firm Luno will cut its staff complement by 35%.

Amazon, Meta, Twitter and Salesforce are some of the global giants that have announced large-scale job cuts. The companies cited the uncertain economy as the reason for the layoffs, saying they are prioritising the long-term health of their businesses.

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