Dell Joins Tech Job Layoffs With 6,650 Job Cuts

This post may contain affiliate links which may compensate us based on your interaction. Please read the disclosures for more information.

Image source: Getty Images
What happenedDell became the latest tech company to announce widespread layoffs today (Feb. 6). Per Bloomberg, the computer giant notified the Securities and Exchange Commission (SEC) that it will slash 6,650 jobs — about 5% of its workforce. Dell CEO Jeff Clarke shared the news in a message to staff, writing, “There is no tougher decision, but one we had to make for our long-term health and success.”So whatDell’s cuts come against a backdrop of significant layoffs in the banking and tech sectors. Amazon, Microsoft, Meta, and Google are among the companies that have cut head counts recently. But so far, the job losses haven’t spread to many other industries. Quite the opposite, in fact. Last week, data from the Bureau of Labor Statistics showed that unemployment had hit a 54-year low.Nobody has a crystal ball, so it’s almost impossible to say whether tech job losses are an anomaly or an indication of what might happen in other sectors. That said, many economists still warn a recession is likely, in spite of positive jobs data. For example, Insider reports that Bank of America analysts think the positive job news could trigger more aggressive moves from the Federal Reserve, which in turn could lead to more economic difficulties.Now whatIt isn’t easy to make decisions about your personal finances when there’s so much uncertainty and conflicting information. Particularly if you’re considering changing jobs or making other big life moves such as buying a house. But there’s no harm in being prepared for economic difficulties, even if they end up not happening.Here are some steps you can take:Stock up your emergency fund: Whether it’s a job loss or a medical issue, you never know when life will throw you a curveball. Having three to six months’ worth of living expenses in a savings account gives you a cushion against the unexpected. Indeed, some financial experts suggest the uncertain economic conditions mean you should put even more into your emergency fund.Pay down debt: If a chunk of your paycheck is tied up in debt payments, it can make it even harder to cope if you suddenly lose some or all of your income. On top of which, rising interest rates make it more expensive to carry debt, particularly the credit card variety. Learn more about ways to pay down debt.Dust off your resume: It’s much easier to make a plan and update your resume when you have a job and things are going well. Think about the measurable ways you add value in your current job, and what specific data you can include that supports your achievements.Connect with your professional network: In addition to updating your resume, reach out to old colleagues and look for other ways to reconnect with your network. Those connections can often be invaluable when looking for a job.Alert: highest cash back card we’ve seen now has 0% intro APR until 2024If you’re using the wrong credit or debit card, it could be costing you serious money. Our expert loves this top pick, which features a 0% intro APR until 2024, an insane cash back rate of up to 5%, and all somehow for no annual fee. In fact, this card is so good that our expert even uses it personally. Click here to read our full review for free and apply in just 2 minutes. Read our free reviewWe’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy. 

What happened

Dell became the latest tech company to announce widespread layoffs today (Feb. 6). Per Bloomberg, the computer giant notified the Securities and Exchange Commission (SEC) that it will slash 6,650 jobs — about 5% of its workforce. Dell CEO Jeff Clarke shared the news in a message to staff, writing, “There is no tougher decision, but one we had to make for our long-term health and success.”

So what

Dell’s cuts come against a backdrop of significant layoffs in the banking and tech sectors. Amazon, Microsoft, Meta, and Google are among the companies that have cut head counts recently. But so far, the job losses haven’t spread to many other industries. Quite the opposite, in fact. Last week, data from the Bureau of Labor Statistics showed that unemployment had hit a 54-year low.

Nobody has a crystal ball, so it’s almost impossible to say whether tech job losses are an anomaly or an indication of what might happen in other sectors. That said, many economists still warn a recession is likely, in spite of positive jobs data. For example, Insider reports that Bank of America analysts think the positive job news could trigger more aggressive moves from the Federal Reserve, which in turn could lead to more economic difficulties.

Now what

It isn’t easy to make decisions about your personal finances when there’s so much uncertainty and conflicting information. Particularly if you’re considering changing jobs or making other big life moves such as buying a house. But there’s no harm in being prepared for economic difficulties, even if they end up not happening.

Here are some steps you can take:

Stock up your emergency fund: Whether it’s a job loss or a medical issue, you never know when life will throw you a curveball. Having three to six months’ worth of living expenses in a savings account gives you a cushion against the unexpected. Indeed, some financial experts suggest the uncertain economic conditions mean you should put even more into your emergency fund.Pay down debt: If a chunk of your paycheck is tied up in debt payments, it can make it even harder to cope if you suddenly lose some or all of your income. On top of which, rising interest rates make it more expensive to carry debt, particularly the credit card variety. Learn more about ways to pay down debt.Dust off your resume: It’s much easier to make a plan and update your resume when you have a job and things are going well. Think about the measurable ways you add value in your current job, and what specific data you can include that supports your achievements.Connect with your professional network: In addition to updating your resume, reach out to old colleagues and look for other ways to reconnect with your network. Those connections can often be invaluable when looking for a job.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2024

If you’re using the wrong credit or debit card, it could be costing you serious money. Our expert loves this top pick, which features a 0% intro APR until 2024, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our expert even uses it personally. Click here to read our full review for free and apply in just 2 minutes.

Read our free review

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

 Read More