PC Market Slump

PC Market Slump

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  • Dell Technologies (DELL) is laying off 6,650 employees worldwide, or 5% of its total workforce in order to combat the fall in the personal computer market and prepare for a possible recession. 
  • Dell has roughly 133,000 employees, with about a third of them headquartered in the U.S. It had previously put a stop to hiring and made travel restrictions when PC sales, which make up more than half of Dell's income, fell off during the pandemic. But the company has stated that those measures have not been enough. 
  • After experiencing fast growth during the pandemic thanks to remote working, the market for PCs and tablets is predicted to experience another year of decrease in 2023 with a drop of 2.6%. Dell stated that due to the deteriorating market conditions, it expects to record costs associated with the layoffs in its next January fiscal fourth quarter.

Why it matters

Competitor HP (HP) has also announced it will eliminate up to 6,000 positions. Meanwhile, other companies such as Goldman Sachs Group (GS) and Google (GOOGL) have made thousands of layoffs this year to weather a decline in demand brought on by high inflation and rising interest rates.


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