
Dell to Lay Off China-Based Staff
The company notified affected staff this week, informing them that their last working day will be October 10, South China Morning Post reported, citing two employees who received the notice.Until then, employees will be allowed to apply for open internal positions, according to the report.
Dell Employees in Shanghai and Xiamen Affected by Third Round of Cuts
The latest layoffs are focused in Dell’s EMC storage unit and its Client Solutions Group (CSG), with layoffs primarily affecting staff in Shanghai and Xiamen, a coastal city in Fujian province, as reported by South China Morning Post. One of the employees said this is the third round of layoffs in recent months, with earlier termination dates being August 15 and September 12, as per the report.The total number of people affected in this round is not known as it was not publically disclosed by Dell, according to South China Morning Post.
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Global Headcount at Dell Drops in One Year
The move is part of broader global workforce reductions by the Texas-based company, as per the report. According to its financial reports, Dell’s total headcount dropped to around 108,000 as of January 31, down from approximately 120,000 a year earlier, as reported by South China Morning Post. The filings said the company took steps to reduce costs, including limiting external hiring and reorganising staff, which led to a reduction in overall headcount, according to the report.Dell CSG Income Falls Even as Overall Profits Rise
Dell’s Client Solutions Group saw a 9% decline in operating income over the six months ending August 1, even as the company’s overall operating income grew by 25% to nearly $3 billion during the same period, as per the South China Morning Post report.ALSO READ: Palantir knocked off its throne - this surging stock just took S&P 500’s top spot
US-China Tensions Driving US Tech Firms to Scale Back in China
The US-based firm is the latest in a series of American tech companies to cut jobs in China due to the increasing US-China rivalry that has forced global businesses to adjust their operations on the mainland, according to the report.Micron, IBM, Microsoft Also Scaling Back in China
In August, US chipmaker Micron Technology began another round of layoffs, cutting hundreds of jobs in China, as per the report. The company said the decision followed the challenging financial performance of its mobile NAND products, and it would discontinue development of new mobile NAND products globally, as reported by South China Morning Post.In March, IBM closed its IBM (China) Investment Company after previously laying off more than 1,000 employees in 2023 across its China Development Lab and China Systems Lab in several cities, as reported by South China Morning Post. The company said the entity had completed its mission of conducting research and development in China, according to the report.
Earlier this year, Microsoft shut down its IoT & AI Insider Lab in Shanghai, as per the report. Last May, the company offered relocation options to 700 to 800 employees from its China-based AI teams and also initiated large-scale layoffs, as per the South China Morning Post report.
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FAQs
Why is Dell laying off employees in China?Dell is reducing its global workforce to cut costs. The China layoffs are part of this broader restructuring,as per the South China Morning Post report.
Which Dell departments are affected in China?
The layoffs are mainly hitting the EMC storage unit and Client Solutions Group (CSG), as per the South China Morning Post report.
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