Dell undertakes further redundancies
- 16 September, 2020 14:39
Dell Technologies will undertake another round of redundancies as the tech giant aims to "address its cost structure to make sure it is as competitive as it should be now and for future opportunities".
According to a Bloomberg report, Dell COO, Jeff Clarke told staff in a quarterly meeting on September 14 that the workforce reductions won’t be limited to any particular team or division.
The tech giant wouldn’t specify the number of employees impacted, nor if that would impact Australian, New Zealand or Southeast Asian employees. This marks the second round of redundancies in a matter of months.
Dell also undertook workforce reduction measures in July, with Dell saying it wasn’t COVID-19 related, rather based on decisions made earlier in the year. Globally, Dell has around 165,000 employees on its books.
In a statement to ARN, Dell said it was “evaluating its business to make sure it has the right number of team members in the right roles and in areas where customers need us most".
“We're addressing our cost structure to make sure we’re as competitive as we should be now and for future opportunities,” Dell said. “While we do this type of organisational review regularly, and while it always results in some job loss or restructuring, we recognise that there is nothing routine about today’s environment.
“We updated our team today with this information so they understand the actions occurring this week. Every decision we’ve made up to this point is to make sure we’re doing what’s best for the long-term health of our company and our team.”
Dell recently reported its total revenue slid 2.7 per cent to US$22.73 billion from a year earlier, but edged past analysts' average estimate of US$22.52 billion, according to IBES data from Refinitiv.
Revenue from the company's biggest segment, which includes desktop PCs, notebooks and tablets, fell 4.6 per cent to US$11.20 billion, and data centre sales dropped 4.8 per cent to US$8.21 billion as companies directed their spending towards remote work, Dell said.
Its software unit VMware, which has directly benefited from the shift to cloud, posted a 9.7 per cent rise in revenue to US$2.91 billion. Dell said in July it was planning to spin off its 81 per cent stake in the unit.