Dell Technologies is gearing up for a round of job cuts — the second one in about two months — in a bid to address its ‘cost structure’. The Company has a significant number of employees in India, across the metros, as well as in Pune, Bengaluru, Hyderabad and Ahmedabad, who may be impacted.
Having witnessed a 2.7 per cent dip in revenue in Q2 owing to the pandemic, the Company is trying to improve its situation. While the demand for Dell notebooks and software spiked — with more people taking to working from home, and online learning and teaching — its data centre sales took a hit and fell by about five per cent, when the demand for remote-working solutions grew.
The employees have been informed of the decision to trim, starting next week.
While the Company maintains that the layoffs will take place across teams and divisions, some social media posts reveal that there will be major cuts in the data centre and human-computer interaction (HCI) divisions, medium cuts in the IT division and minor cuts in the desktop division. However, the exact number of cuts has not been revealed by the Company yet.
The Texas-headquartered company had a 165,000-strong global workforce at the beginning of the year, which included about 31,000 employees at VMware. In January, VMware had slashed some jobs as part of a ‘rebalancing’ exercise, but the exact number of job cuts had not been revealed then.
With this round of layoffs, Dell hopes to make sure it has the right team size, with the right talent in the right areas, where its customers need it the most. This move is also hoped to address its cost structure and ensure the Company remains competitive in the future.