Dell cutting 6,650 jobs, market conditions ‘continue to erode’

Thousands of jobs are on the chopping block at Dell Technologies (Dell), as the tech giant continues to navigate a challenging economic environment.

In a filing to the U.S. Securities and Exchange Commission (SEC) on Feb. 6, Dell stated that it will cut approximately 6,650 jobs, or five per cent of its global workforce.

“What we know is market conditions continue to erode with an uncertain future,” co-Chief Operating Officer Jeff Clarke said in a memo to staff.

“The steps we’ve taken to stay ahead of downturn impacts – which enabled several strong quarters in a row – are no longer enough. We now have to make additional decisions to prepare for the road ahead.”

In addition to the job cuts, Clarke noted that the company has paused external hiring, limited travel, and reduced its spending on outside services.

As of Jan. 28, 2022, Dell employed a total workforce of 133,000 people, according to a company filing with the SEC.

Canadian impact

Dell didn’t disclose how many Canadian employees are affected by the latest round of cuts.

However, Clarke said staff will be notified by their leader soon “about any changes that may impact your team.”

“In the coming days and weeks, you’ll begin to see a series of changes – some resets – across the organization to better structure us for the future, to better collaborate, reduce complexity, increase speed and to accelerate innovation.”

Major tech layoffs continue

Dell joins the growing list of major North American tech companies that have announced sweeping layoffs to kick off 2023.

Several big names, including Alphabet, Clearco, Hootsuite, Microsoft, Amazon, and Salesforce, are significantly scaling back their staffing levels as they continue to monitor market conditions.

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• VerticalScope cutting 22% of staff amid economic uncertainty
• Employment lawyer on recent tech layoffs and severance
• Layoffs in Canada

Termination agreements for Dell employees

In Canada, non-unionized employees and senior executives at Dell are owed full severance pay when they lose their jobs due to downsizing or corporate restructuring.

This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.

Severance can be as much as 24 months’ pay, depending on a number of factors.

LEARN MORE
• Severance packages in mass layoffs
• Severance for technology industry employees
• Rights to severance for provincially regulated employees

WATCH: Employment lawyer Lior Samfiru explains what rights employees have if they are being fired or let go on an episode of the Employment Law Show.

Before you accept any severance offer, have an experienced employment lawyer at Samfiru Tumarkin LLP review it and your employment contract.

We can tell you if what you have been provided is fair and how to get proper compensation if it falls short of what you are actually owed.

If you aren’t given the full amount, which happens often, you have been wrongfully dismissed and are entitled to compensation.