Dell & Pocket Aces cut jobs because of economic challenges

Dell lays off 5% of its global workforce while Sequoia backed Pocket Aces lays off 20% of its workforce as part of a restructuring effort. 

0
7377

Dell

Dell Technologies will cut approximately 5 per cent of its worldwide workforce, or 6,650 jobs, as reported by Bloomberg on February 6. The company’s co-chief operating officer, Jeff Clarke, noted in a memo viewed by Bloomberg that the company is facing market conditions that have become increasingly challenging with an uncertain future. 

Despite the cuts, Clarke remains confident that the company will emerge stronger and will be prepared for when the market improves. The tech sector has seen an increase in job cuts with 97,171 in 2022, up 649 per cent from the previous year, according to consulting firm Challenger, Gray & Christmas Inc. 

Dell has also been affected by a decline in personal computer shipments, with a 37 per cent drop in the fourth quarter of 2022, which is the largest among major companies. The company’s headcount will be its lowest in at least six years after the reduction, with around 39,000 fewer employees than in January 2020.

In January 2023, Dell announced its plan to reduce its dependence on Chinese chips due to increasing competition between the two countries. The company aims to stop using Chinese-made chips by 2024. This decision has been seen as a setback for China in the chip technology sector.

Pocket Aces Pictures

Pocket Aces Pictures, a digital entertainment platform, has announced layoffs of 20 per cent of its workforce, or 50 employees, as part of a restructuring effort. 

The company stated that the changes were necessary to maintain an agile and resilient operating model, and that employees from the content, production, and post-production departments were affected. 

The company is shifting its focus to a freelance-heavy model for long-form content and a creator-led Instagram-first model for short-form content. The co-founder and CEO of Pocket Aces, Aditi Shrivastava, stated that the company will provide financial support and health insurance to affected employees and will continue to work with some in a freelance model.

This move by Pocket Aces adds to the growing list of Indian startups that have recently laid off employees due to cost optimisation, corporate restructuring, or performance-based reasons. Other companies such as FarEye, which is run by RoboticWares and OLX Group have also announced layoffs in recent weeks.

Comment on the Article

Please enter your comment!
Please enter your name here

fifteen + 7 =