Dell, the technology giant known for its computers and laptops, has recently announced a significant reduction in its workforce as part of a cost-cutting measure.
The company, which had nearly 126,000 employees as of February 2, 2024 now stands at approximately 120,000 after firing 6,000 workers according to a Reuters report.
This move is an illustration of the devastating impact of Bidenomics and other policies implemented by the Biden administration on American businesses.
In a filing, Dell attributed the layoffs to a prolonged period of diminished demand for its computers, spanning nearly two years.
This decline in sales has resulted in an 11 percent decrease in the company’s revenue, as reported in its financial results for the last quarter of the year.
#newsmakeroftheday@Dell reduces its workforce by about 6,000 jobs after rule change for remote employees
The company, which currently has 120,000 staffers, will limit external hiring and begin employee reorganisation.#internationalfinance #dell #layoff #employeewelfare pic.twitter.com/qkttTts8DQ
— International Finance (@IntlFinanceMag) March 26, 2024
The sluggish market conditions have forced Dell to make tough decisions, including limiting external hiring and letting go of valuable employees.
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While Dell expects its revenue from the client solutions group, which includes PCs, to increase for the entire year, the segment experienced a 12 percent drop in the last quarter. This inconsistency in demand has left the company grappling with financial challenges, leading to the unfortunate layoffs.
Despite the current difficulties, Dell remains optimistic about the future, anticipating an improvement in demand and more competitive pricing for its products in the financial year 2025. However, this optimism is tempered by the company’s recent policy changes regarding remote work, at least among employees of the firm.
In a departure from its long-standing hybrid work culture, Dell has implemented strict return-to-office (RTO) policies.
As per internal documents obtained by Business Insider, employees are now classified as either “hybrid” or “remote” workers. While hybrid employees are mandated to spend at least three days a week in an approved office, remote workers face significant limitations, including being ineligible for promotions or role changes within the company.
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The Dell layoffs serve as a sobering example of the far-reaching consequences of Bidenomics and the current administration’s policies on the American workforce.
