On March 26, 2024, Xie Xin, CEO of Feishu, a subsidiary of ByteDance, announced that he would appropriately streamline the scale and carry out a new round of organizational adjustments;
On March 14, 2024, according to relevant sources, GF will complete a personnel restructuring this year, laying off some positions in Singapore and Taiwan, China, and planning to re-recruit people in India for these positions;
On February 27, 2024, Texas Instruments laid off a team of about 50 people responsible for the research and development of low-end power chips in Beijing.
So far, 222 technology companies have laid off a total of 56,858 employees.
As more and more foreign companies leave or eliminate a large number of jobs in the Chinese market, Dell, as a giant in the PC and enterprise market, appears relatively "calm", but it has not been able to stand alone for a long time...
Once upon a time, Lenovo, HP, Dell, and Asus were once known as the four big King Kong of laptops, accounting for more than 80% of the domestic market share.
During the golden age of the PC, Dell became an industry legend with its innovative direct sales model, and its founder, Michael Dell, who was once on a par with tech giants such as Steve Jobs and Bill Gates, was hailed as a business myth with his extraordinary entrepreneurial story.
Michael Dell, born in Texas in 1965, earned $18,000 at the age of 16 by pulling advertisements for newspapers, and founded Dell Computer at the age of 19, and in the next few years, Dell computers quickly swept the United States and began to expand globally, at the age of 27, Dell became the youngest CEO of a Fortune 500 company in the United States, a record that no one has ever broken.
In the wave of PC popularization in the 90s of the last century, Dell computers maintained a rapid growth rate of more than 30%, and finally surpassed the industry giant IBM to become the leader of global PC sales.
However, after Michael Dell's retirement in 2004, Dell seemed to have lost his bearings. In 2005, there were a number of explosions and fires in Dell laptops, and in 2006, it suffered a "core change door" scandal in China, which led to a significant decline in consumer trust, and was surpassed by HP at the end of 2006 and lost its leading position in the global market.
According to reports at the time, the global market share fell to 10.7% in 2012, only 0.5 percentage points higher than the fourth-place Acer, and in 2013, Dell's market value was only $25 billion, surpassing HP and Lenovo in the PC market competition.
In the midst of his disappointment with Wall Street, Michael Dell, with the support of old friends such as Bill Gates and Silver Lake Private Equity, decided to take Dell computers private and delist, a move that has been hailed by the industry as one of the most amazing privatization deals in IT history.
As for Dell's recent layoffs, it is mainly closely related to the slowdown in demand in the personal computer market in the past two years.
According to the company's fourth-quarter financial report, revenue fell to $22.3 billion, down 11% year-on-year, of which client solutions business (CSG) revenue was $11.72 billion, down 12% year-on-year, and commercial and consumer PC revenue also fell 11% and 19%, respectively.
Despite the short-term challenges, Dell maintains its full-year revenue growth expectations for CSG and forecasts a recovery in market demand and a more competitive pricing environment in fiscal 2025.
However, the company expects that costs will also increase, and the change in its relationship with VMware may impact net revenue in other businesses, which may continue to face downside risks.
According to the latest data from Canalys, in the Chinese mainland market in 2023, Dell PC shipments are close to "halving", down 44% month-on-month, with shipments of only 3.148 million units, the decline is obviously much greater than the industry average, and Huawei surpassed Dell with 3.986 million shipments and an increase of 11%, rising to third place.
Source: Fast Technology
Looking at the number of employees, on March 28, according to Dell, as of February 2, 2024, the company has 120,000 employees worldwide, a decrease of 10% in a year, about 126,000 employees.
At the beginning of 2023, Dell announced that it would lay off about 6,650 employees, but the number of layoffs almost doubled in fiscal 2024, eventually laying off 13,000 people.
According to an employee who claims to be Dell, Dell has implemented large-scale layoffs in China, resulting in a sharp reduction of about 50% in the number of employees at the Xiamen plant in a year, and the sales department has also experienced a drastic downsizing, and even middle and senior managers have undergone major adjustments.
It is said that at the end of March, 120 Dell China employees will leave.
"Despite these difficult decisions, we remain committed to empowering our people and attracting, developing and retaining talent," Dell said in the filing. ”
In addition, Dell is adjusting its work model, eliminating fully remote work and introducing a new office attendance policy. Employees will be divided into "hybrid" and "remote" categories, and promotion opportunities will be reserved primarily for "hybrid" employees who work in the office at least three days a week.
According to the analysis of industry experts, behind the decline in Dell's PC sales and revenue and layoffs, in addition to macro factors such as weak global demand and rising costs, Dell's "de-China" strategy has also become an important reason for this situation.
As early as the beginning of 2023, Dell has planned its supply chain and foundry adjustment strategy, planning to completely stop using chips made in Chinese mainland in 2024, including chips produced in mainland China by Chinese mainland manufacturers and non-Chinese mainland manufacturers; start the supply chain "de-Chinaization" of desktop computers, laptops and peripheral products in 2025, and plan to move 50% of production capacity out of Chinese mainland by the end of 2025; in 2026, eliminate parts made in Chinese mainland; and in 2027, completely leave Chinese manufacturing.
Previously, Dell had reported that its vice president-level senior Wang Lijun took the initiative to resign, and the current internal personnel structure was officially announced.
On March 25, Dell announced the adjustment of the leadership team in Greater China, appointing Wu Dongmei as the global senior vice president of Greater China, with full responsibility for direct sales and partnerships of Dell's full line of products and solutions in Greater China.
This adjustment marks an important shift in Dell's strategy in Greater China, which indicates that Dell will further integrate resources, optimize regional market strategies, and promote the development of the company in the Chinese market.
According to the latest "2024 World Economic Situation and Prospects" report released by the United Nations, due to favorable factors such as the Windows update cycle and the emergence of AI-enabled and Arm-based devices, PC shipments are expected to reach 267 million units in 2024, 8% higher than in 2023, and the global PC market will show a recovery trend.
As industries such as artificial intelligence, digital security, and cloud computing are growing, the need for upgrades in the IT field is also coming, which is a good outlook for the PC market.
In the era of rapid development, a large number of jobs will be slowly replaced by AI, even companies as strong as Dell, under the impact of the torrent of the times, if the right changes are not made, they will still gradually decline.
For enterprises, it is necessary to correctly predict the development trend of the industry, prepare for the transformation and upgrading of the enterprise at all times, conform to the development trend of the technology industry, and turn the enterprise into a new development path.
For us, only continuous learning can not be obsolete, and at the same time, with the help of AI, more possibilities can be created.
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