GCC sees rise in tech jobs despite drop in PC sales

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Q4 2023 posts a rise in PC shipments after eight straight quarters of decline. (WAM)
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  • Technology remained GCC's most active industry sector in terms of hirings, with 77 percent of organizations increasing their headcount last year, latest reports point out
  • Nearly 88% of employers in the technology sector in GCC are planning to hire permanent employees this year, predicts the GCC Salary Guide 2023 by Hays Middle East

DUBAI, UAE — Even as the personal computing devices (PCD) market in Middle East and Africa (MEA) witnessed a sharp decline in shipments during the fourth quarter of 2022, technology remained the GCC’s most active sector in terms of hirings, with 77 percent of organizations increasing their headcount last year, the latest reports pointed out.

According to the latest industry analysis conducted by International Data Corporation (IDC), shipments across the regional PCD market – which comprises desktops, notebooks, workstations, and tablets – totaled 5.2 million units in Q4 2022, down 23.6 percent year on year.

“As demand continues to normalize following the exceptionally high sales witnessed during the COVID-19 pandemic, shipments continue to undergo a considerable decline,” says Fouad Charakla, IDC’s associate research director for client devices in the Middle East, Turkey, and Africa. “However, the market’s performance is on par with pre-pandemic levels seen in 2019.”

From a product category perspective, PC shipments were down 12.3 percent year on year. Lenovo maintained top position with a moderate decline, while HP Inc. suffered a sharp decline, coming second. Dell, on the flip side, experienced healthy growth to rank third.

However, according to the GCC Salary Guide 2023 by Hays Middle East, nearly 88 percent of employers in the technology sector in GCC are planning to hire permanent employees this year.

Nearly 88 percent of employers in the technology sector in GCC are planning to hire permanent employees this year. (WAM)

Technology is currently the most active industry sector for recruitment, with 77 percent of organizations increasing their headcount in 2022 due to significant local and foreign direct investments in areas such as data, cybersecurity, and cloud solutions, the report pointed out.

Despite uncertainties in the global technology sector, the guide notes that growth in the GCC is continuing at a rapid pace.

In contrast, various tech giants, including Google, Microsoft, Amazon, SAP, Spotify, TikTok, and IBM, have recently implemented significant layoffs, affecting over 68,000 employees globally in January 2023.

As per the IDC report, global shipments of traditional PCs fell 5.1 percent in the first quarter of 2022 but exceeded previous expectations. Despite ongoing supply chain and logistical challenges, vendors still shipped 80.5 million PCs, the report highlighted.

Lenovo remained the top company, with a market share of 22.7 percent, followed by HP, Dell Technologies, and Apple. Dell, Apple, and ASUS were the only top-tier vendors to see year-over-year shipment growth.

Shipments of desktop and laptop computers fell 31 percent and 3 percent, respectively, as economic activity and business confidence eased. However, the consumer tablet market grew 18 percent “year-on-year,” the only bright spot in the third quarter.

The US PC market fell 20.5 percent in the fourth quarter of 2022, marking the sixth consecutive quarter of shipment declines. Similar to the global PC market trend, consumer and corporate spending on PCs has slowed down due to economic conditions.

In the EMEA, the PC shipments decrease is still insignificant compared to other world regions. Yet, it is considered a risk in the future, especially since many international companies have been laying off employees due to lower PC sales.

Dell Technologies, facing declining demand for personal computers, has decided to cut about 6,650 jobs, becoming the latest technology company to lay off thousands of employees.

According to a company spokesperson, the cuts amount to about 5 percent of Dell’s global workforce.

HP stated in November that it would lay off as many as 6,000 employees. In addition, each of Cisco Systems and International Business Machines has announced that they will lay off around four thousand employees. The tech sector announced 97,171 job cuts in 2022, up 649 percent from the previous year, according to consulting firm Challenger, Gray & Christmas.

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