On February 6, Dell Technologies Inc will cut 6,650 positions, or around 5% of its global workforce.

Due to heightened competitiveness between the two countries, the firm decided on January 15 to limit its reliance on Chinese chips. This was a setback for China in the chip-technology sector, according to Valerio Fabbri of Geopolitica.info. It declared its intention to lessen its reliance on chips manufactured in China, including those manufactured by international enterprises. The business has stated that it will stop utilising Chinese-made chips by 2024.

Dell reported a 68 percent increase in quarterly operating profit in November 2022, as robust demand for servers and network equipment offset sluggish PC sales and easing supply-chain challenges helped keep costs in check. Consumer revenue declined by 29%, while commercial revenue fell by 13%. According to Refinitiv IBES statistics, total revenue fell 6% to $24.72 billion but surpassed projections of $24.54 billion.

The company benefited from a better supply chain, which relieved pressure from rising component and freight costs, as well as cost-cutting initiatives such as a moratorium on external employment.

According to the corporation, operating expenses declined 8% in the third quarter ended October 28.

Meanwhile, the firm is anticipated to disclose further information on the financial impact of the job layoffs when it announces its fourth-quarter results on March 2.