Dell’s co- Chief Operating Officer Chuck Whitten to depart amid sluggish computer sales

Dell Technologies' Co-Chief Operating Officer Chuck Whitten will be resigning next month amidst a noteworthy downturn in computer demand for the company.
 
Chief Executive Officer Michael Dell announced Whitten's departure in an email to employees on Friday, which was later shared by Whitten on LinkedIn. Whitten had been with Dell for 14 years as an external consultant before becoming Co-COO in 2021.

The post said, “After discussions with Chuck and the board of directors about the leadership profile the company needs in its next chapter, we have jointly decided that Chuck will depart Dell Technologies.” 

Dell has experienced a notable drop in demand for personal computers in the past two years, making up more than half of their revenue. According to a Gartner's report published on April 11, Dell witnessed shipments decline for the fourth consecutive quarter year-over-year in Q1CY23. The Asia Pacific market suffered the most with shipments falling by over 40%. The decline was primarily due to the weak business PC market.  

The company confirmed that Whitten will not be replaced as co-head of operations. Jeff Clarke will continue to serve as COO and VP. Despite stepping down, Whitten expressed his support for Dell and pride in their achievements during his tenure. 

According to a Bloomberg report, the COO’s role at Dell is more visible compared to many of its peers. The role is currently shared by Whitten and Co-COO Jeff Clarke. While Michael Dell used to handle quarterly earnings events, Whitten and Clarke now take care of them. 

Whitten was absent from an analyst event last Monday. Clarke, however, will continue as the sole COO. Whitten was appointed as co-COO in 2021. Before joining Dell, Whitten spent over two decades at consulting giant Bain & Co., where he worked as an engineer and designer of Dell products. 

The Bloomberg report also mentioned that Whitten is the second highest-compensated executive at the company, with a total projected compensation of $12.6 million for fiscal year 2023. 

On February 6, Bloomberg reported that Dell intends to reduce its workforce by around 6,650 jobs. However, there is optimism that the PC market will stabilise and recover in the second half of the year.