Dell, the global computer manufacturer, is facing the harsh reality of declining demand for PCs and laptops, as well as an uncertain future, and has announced that it is cutting approximately 5% of its global workforce, amounting to 6,650 jobs. According to a memo from Dell Co-Chief Operating Officer, Jeff Clarke, the company’s previous cost-cutting measures have fallen short and the current market conditions have continued to erode.

Industry analyst IDC reported a significant decline in Dell’s computer shipments during the recent holiday quarter, with a 37% drop compared to the same period the previous year. Bloomberg reports that 55% of Dell’s revenue is generated from PC sales, making this decline particularly impactful.

Despite the job losses, Clarke remains optimistic and views this as an opportunity to drive efficiency and innovation through department reorganization. The number of global Dell employees will be at its lowest in six years, with around 39,000 fewer roles compared to the 165,000 full-time roles reported in January 2020. Clarke believes that the job cuts are essential for the company’s long-term success and that the company will be ready for the market’s rebound when it arrives.

Unfortunately, Dell is not the only computer brand facing declining demand and job cuts. Major players such as HP and Lenovo have also announced similar cuts, and the broader tech industry has been impacted by a downturn in the economy due to slow growth, over-hiring, and supply chain issues, leading to mass layoffs at companies like Meta, Google, Microsoft, and Amazon.