Dell plans to axe more jobs in bid to cut costs

The hardware giant is conducting an "organisational review" which "always results in some job loss or restructuring"

Dell has notified employees that it will be making redundancies this week in a bid to cut costs as it prepares for a tough economic climate.

The company's chief operating officer (COO) Jeff Clarke told staff on Monday that these job cuts won't be limited to a particular unit within Dell, according to Bloomberg.

There are no official figures for how many cuts there will be, but Dell is reported to have some 165,000 employees around the world. The firm said in a statement that it was "evaluating" its business to make sure it had "the right number of team members in the right roles". 

"We're addressing our cost structure to make sure we're as competitive as we should be now and for future opportunities," a Dell spokesman 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."

Dell announced a round of job cuts in August, which wasn't attributed to the COVID-19 pandemic. Again, the tech giant refrained from commenting on specific numbers, but an anonymous source told The Register it could be in the region of 6% of its global workforce. 

The Texas-based tech company has seen uneven sales during the pandemic, with businesses spending more on personal computers due to the shift remote working, but being more cautious with spending on data centres. The company has reportedly suspended bonuses and promotions for the fiscal year.

Dell is also planning to roll out a remote working strategy, allowing staff to work from home as much as they like, from one to five days a week, provided their line managers agree. This will include $400 to put towards home office equipment. 

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