Dell announces new leadership in APJ as 6,500 staff face layoffs
Dell becomes the latest tech company to announce layoffs as the tech industry continues to reduce its workforce. While most tech companies are reducing their employees after a hiring spree during the pandemic, the layoffs at Dell are caused by weak personal computer sales over the last few months.
The layoffs will include some 6,500 roles which make up about 5% of the company’s global workforce. Demand for personal computers (PC) continues to fall as more employees return back to their offices to work. According to a report by Gartner, global PC shipments only totaled 65.3 million units in the fourth quarter of 2022, a 28.5% decrease from the same period in 2021.
Despite commanding an 18.9% of the market share in PC sales, Lenovo and HP models outsold Dell PC models with Apple, Asus and Acer offering competition in the industry as well. While all PC brands were affected by the drop in sales, Dell was reported to have the largest decline – which was 37% compared to the same period in 2021.
When it comes to revenue, 55% of Dell’s revenue comes from its PC business as well. Jeff Clarke, Co-Chief Operating Officer at Dell wrote in a memo that Dell is experiencing market conditions that continue to erode with an uncertain future, according to a Bloomberg report.
Interestingly, Dell Technologies also announced the appointment of a new President for its Asia Pacific and Japan region. Peter Marrs takes over from Amit Midha, who will be leaving Dell Technologies to pursue an opportunity outside of the company.
In a statement to the media, the company said that Mars will lead the region’s growth and development across the company’s extensive technology portfolio. He will be responsible for driving the corporate strategy and sales in Dell’s APJ region which includes Australia, New Zealand, India, Japan, Korea and Southeast Asia. Based in Singapore, Marrs will report to John Byrne, President of Sales, Global Theaters and Dell Technologies Select, Dell Technologies.
“The opportunities in APJ are immense, and I’m thrilled to lead Dell business in the region,” said Marrs. “We have a talented team, a strong portfolio of solutions and a culture that fosters innovation. We are well placed to help our customers and partners in APJ succeed on their digital transformation journeys, and drive our growth in the region.”
Dell has several plants in the Asia Pacific region that is responsible for manufacturing components for its PC business. In Malaysia, Dell opened its first Asia Pacific customer center in 1996 while investments in other parts of the region have also been pouring in over the years.
The company also announced revenue of US$24.7 billion for its fiscal 2023 third quarter last year, which was down by 6%. It remains to be seen if the layoffs planned by Dell will involve employees in Asia Pacific as well.
One thing is for certain though, the tech industry will most likely continue to see more layoffs throughout the year, especially with economic uncertainties on the horizon. The reality now is that the tech industry is witnessing close to 100,000 layoffs in the first five weeks of 2023 compared to 159,000 tech layoffs in all of 2022.