Beleaguered PC assembler Dell is slashing some 6,650 jobs, or 5% of it’s workforce, as it struggles with a slump in the personal computer market, rampant inflation, and a looming recession.
The move on Monday aligns Dell with a raft of U.S. companies from Goldman Sachs Group Inc to Alphabet Inc that have laid off thousands this year to ride out a demand downturn wrought by high inflation and rising interest rates.
Dell had already rolled out cost-cutting moves such as a hiring pause and limits on travel as it dealt with a post-pandemic collapse in PC sales, which account more than half of its revenue.
“It was only a matter of time before the wave of tech layoffs reached Dell’s shores, given how sensitive the company is to both consumer and corporate confidence,” said Susannah Streeter, markets analyst, Hargreaves Lansdown.
MacDailyNews Take: Now, to be fair, this is only happening because beleaguered Dell makes consumer-grade junk and their customer demographics are crap.
Apple is best-positioned to weather inflation and recession due to its superior customer demographics. – MacDailyNews, February 3, 2023
We’ve been covering Apple in these pages for over 20 years and have seen Apple perform through multiple recessions.
It’s the non-Apple tech companies that are most at risk during a consumer spending slowdown since their consumers have less, and/or are less willing, to spend. Apple will be just fine, even in a recession. And, during any stock price declines, Apple’s massive buyback plan will be even more effective in retiring shares and providing support for shareholders. – MacDailyNews, October 4, 2022
Apple’s consumer demographics suggest that it could be resilient, even amid inflation. Plus, a very strong profit margin gives the company plenty of flexibility to absorb rising prices should the need arise. – MacDailyNews, November, 11, 2022
The most inflation- and recession-resistant big tech company is Apple, thanks to its superior customer demographics. – MacDailyNews, October 27, 2022
Apple iPhone customers are the most recession-proof smartphone buyers. — MacDailyNews, September 7, 2022
The same goes for Mac, iPad, Apple Watch, and Apple Services customers in personal computers, tablet computers, smartwatches, and subscriptions, respectively. – MacDailyNews, October 13, 2022
When your money becomes a greater concern, you want to spend it wisely… If it’s not an iPhone, it’s not an iPhone. Further, if it’s not an iPhone Pro, it’s not an iPhone Pro. – MacDailyNews, October 27, 2022
See also: Apple’s indomitable Mac keeps gaining market share at the expense of x86-based vendors – January 19, 2023
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There’s more than a hint of schadenfreude in reading about Dell!
You mean that company is still in existence?
Always sad when people lose their job….but it does bring a smile watching Dell suffer.
No, actually, there are quite literally tens of millions of Jameses; I’m certainly not the one and only. It’s still satisfying to kick the sand, though. Nobody had the hubris of Dell back in the day, and Microsoft, in spite of their entrenchment, has struggled since those days when Jobs and Ive more or less reinvented personal technology.
My brother, who is a diehard Windows/Android user, just majorly upgraded his system, and he went Clx, not Dell. Though I have my issues with modern Apple too, kicking sand in Mikey’s face does not get old.
What!? No MDN quote-as is typical for this kind of article-from M Dell saying he’d shut down the company and return the money to shareholders… You guys are losing your touch.
Yup, came to see how many times Apple was larger than Dull…
Yes, I was hoping for the same comparison and picture of Mikey with a bulls eye on his face. C’mon, MDN!…
Michael Dull is such a great way of putting it – kudos to Vic above!
Isn’t Michael Dull the real identity of Epplecynic? I think it is!