Austin-based Dell has joined the slew of technology companies that have announced layoffs to begin 2023, according to reports from Austin-based media outlets.
Austin ABC affiliate KVUE reported that Dell plans to slash 6,600 jobs, or 5% of its total global workforce of 133,000.
In a statement obtained by KVUE, Dell explained it has taken measures to ensure it can continue better serving its customers and partners as economic uncertainty continues to loom.
The company said it paused external hiring and cut spending since the beginning of last summer to navigate “a challenging global environment.”
“We have further opportunity to drive efficiency through department reorganizations, which has resulted in a reduction of team members across the globe,” the statement reads. “This is a difficult decision that was not made lightly, and we’ll support those impacted as they transition to their next opportunity.”
Citing a story from Bloomberg, Austin NBC affiliate KXAN reported that the declining popularity of desktop computers, or PCs, factored into Dell’s decision to impose layoffs.
Per the report, PC sales accounted for 55% of the company’s revenue with a 6% dip, while sales figures between 2021 and 2022 nosedived 37%.
KXAN reported that Dell will have its lowest employee headcount in more than half a decade.
As the second-largest employer in the City of Austin, the NBC station reported, Dell has a number of offices in the state capital and the suburb of Round Rock in Williamson County.
According to KVUE, Round Rock Mayor Craig Morgan said in a statement his city’s economy “remains strong” in spite of the developments at Dell.
“Dell is a major player in our economy, and we’ve worked hard to welcome a diverse group of job-providing industries to our community that can and have weathered economic changes,” Morgan’s statement reads.
Aside from Dell, tech giants such as Microsoft and Amazon announced layoffs in the past month or so.