US Unemployment Rate is Set to Spike as Dell Lay off 12,500 Employees
Dell Technologies Inc., lays off 12,500 of its employees due to a decline in the sale of PCs.
The US unemployment rate might go over 4.30% as Dell Technologies Inc., an American tech giant lays off 12,500 employees according to a Bloomberg report.
Dell is undergoing a strategic restructuring that will affect approximately 10.42% of its global workforce. The company aims to shift focus toward developing Artificial Intelligence (AI) solutions and services.
In a memo sent to Dell employees, the president of the company’s global sales and operations, and John Byrne, president of sales for Global Theaters and Dell Technologies Direct said, “We are getting leaner…We’re streamlining layers of management and reprioritizing where we invest.”
Dell is reducing its workforce as a result of a drop in the sales of Personal Computers (PCs), which has resulted in a 12% fall in revenue for the company.
In addition to developing a new group focused on expanding its AI offerings, the executives said the company would change the operation of its data center sales.
Is Dell Technologies Going into Crypto?
On June 20, Michael Dell, the tech company’s founder and CEO, tweeted, “Scarcity creates value,” to which MicroStrategy’s CEO, Michael Saylor, who is known to be bullish on Bitcoin, replied.
Saylor tweeted, “Bitcoin is Digital Scarcity,” and Dell reposted the tweet.
The exchange between the executives sparked widespread excitement and rumors in the space, consequently speculating that the company may be exploring a strategic investment in Bitcoin.
The incident happened a year after the company joined the Hedera Governing Council, becoming its 39th member. Dell formed the partnership to develop decentralized applications to offer blockchain and Web3-related services to its clients.
More on the Firm
Michael Saul Dell founded the American tech company in 1984. Based in Round Rock, Texas, USA, it focuses on providing electronic devices and other complementary services.
The firm has experienced similar significant workforce restructuring in the past as the company adapts to evolving market conditions. In 2013, due to a decline in PC sales and increased competition in the industry, the company slashed its global workforce by 15%, laying off about 13,000 to 15,000 employees.
Earlier this year, the notorious hacking group, RooTK1T, breached Dell’s network. As a result, the threat actors stole the company’s sensitive information.
