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1Fix the driver behind crashes, sound loss and screen glitches2Repair Windows errors before they cause bigger problems3Scan for outdated or missing drivers - takes under a minuteCDW’s first-quarter 2023 results showed a sharp reversal in customer spending: revenue fell more than 14% year over year to approximately $5.1 billion, marking the company’s first annual revenue decline since its 2013 public offering. The decline was concentrated in hardware and client devices, particularly among larger commercial customers. During the May 3, 2023 earnings call, CEO Christine A. Leahy discussed staffing changes, but CDW did not disclose how many employees were laid off, according to CRN’s report on the call.
Later results show the 2023 downturn was not CDW’s current performance: the company reported year-over-year sales growth in Q1 2026. This article covers the Q1 2023 earnings call and separately summarizes the later results and workforce news.
What happened to CDW’s sales in Q1 2023?
According to CRN’s report on CDW’s Q1 2023 earnings call, CDW reported approximately $5.1 billion in total revenue for the quarter. That was down more than 14% from nearly $6 billion in the same quarter of 2022.
The decline was primarily tied to lower demand for hardware and client devices. Larger commercial customers were the biggest source of pressure, as businesses became more cautious about technology purchases after elevated spending during the pandemic and its aftermath.
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CDW described the quarter as its first year-over-year revenue decline since becoming a public company in 2013. The deterioration was not uniform across every business line, but the commercial business took the most visible hit.
Corporate segment sales dropped more than 17%
CDW’s Corporate segment generated approximately $2.2 billion in net sales during Q1 2023, a decline of more than 17% year over year, according to CRN.
The result reflects the importance of larger business customers to CDW’s sales mix. When those customers delay notebook refreshes, reduce hardware orders, or postpone broader infrastructure purchases, the effect can be substantial even if demand for software, services, and other technology categories remains comparatively resilient.
The following Q1 2023 figures are from CRN’s earnings-call report.
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| Metric | Q1 2023 | Year-over-year change |
|---|---|---|
| Total revenue | Approximately $5.1 billion | Down more than 14% |
| Corporate net sales | Approximately $2.2 billion | Down more than 17% |
| Gross profit | Approximately $1.09 billion | Down about 1% |
| Operating income | $355 million | Down 8% |
| Net income | $230 million | Down from $250 million |
What did CDW say about layoffs?
CEO Christine A. Leahy said CDW reviewed discretionary spending, hiring, promotions, staffing, and geographic locations before adjusting its workforce to match the demand environment, according to CRN’s account of the Q1 2023 call. Her comments confirmed that staffing reductions or other workforce actions were part of the company’s response to weaker sales conditions.
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However, CDW did not disclose the number of employees laid off during the Q1 2023 earnings call. Any claim of a verified total goes beyond the information provided in the call.
Why did CDW’s employee count rise if layoffs occurred?
CDW reported approximately 15,300 coworkers at the end of Q1 2023, a slight increase rather than a decrease. As CRN reported, that figure was affected by CDW’s acquisition of Sirius Computer Solutions.
CDW acquired Sirius for approximately $2.5 billion. The transaction added technical resources in professional and managed services, increasing reported headcount. The number of employees joining through the acquisition could offset or exceed reductions made elsewhere in the company.
The accurate conclusion is limited: CDW adjusted staffing, the company did not publish the number affected, and its total quarter-end coworker count rose slightly because of the Sirius acquisition.
Profit fell less than revenue
Although sales declined sharply, CDW’s gross profit fell only about 1%, to approximately $1.09 billion. Gross margin improved to 21.3%, compared with 18.6% in Q1 2022, according to CRN.
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CDW attributed the margin improvement primarily to higher product margin and a greater mix of netted-down revenue, principally software. Netted-down revenue records the company’s economics on certain transactions differently from a conventional gross sale, so a larger share of that business can raise the reported margin percentage even when total revenue is lower.
Operating income declined 8% to $355 million. Net income was $230 million, down from $250 million in the year-ago quarter. These figures, also reported by CRN, show that margin mix helped cushion the revenue decline but did not fully protect earnings.
Was the 2023 decline a permanent collapse in client spending?
The Q1 2023 report described a period of reduced hardware and device demand, not proof that CDW’s business model had permanently deteriorated. Corporate customers were pulling back most noticeably, while the company continued to benefit from software, services, and other technology demand.
Later results show why the 2023 story should not be presented as CDW’s current performance. CDW’s official Q1 2026 results reported $5.680 billion in net sales, up 9.2% from Q1 2025. Every reported segment showed improved customer spending.
The following segment figures are from CDW’s official Q1 2026 results.
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| Q1 2026 segment | Net sales | Year-over-year change |
|---|---|---|
| Commercial | $3.569 billion | Up 9.6% |
| Government | $633 million | Up 4.6% |
| Education | $675 million | Up 2.5% |
| UK/Canada combined | $803 million | Up 17.9% |
CDW said the Q1 2026 sales growth was driven mainly by greater demand for data storage and servers, netcomm products, software, and notebooks and mobile devices. That recovery makes the Q1 2023 decline best understood as a specific downturn in purchasing demand rather than a continuing trend.
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A separate CRN report said CDW confirmed that organizational changes in July 2026 included coworker reductions. CDW again did not disclose the number affected.
Those changes were discussed alongside CDW’s “Geared For Growth” AI-first initiative, which CRN reported targets up to $200 million in cost savings. Leahy said the expected benefits included productivity improvements and greater efficiency in sales, customer-facing organizations, and end-to-end processes.
The available reporting does not establish that the AI initiative alone caused every reduction. It also does not provide a verified breakdown by department, location, job title, or sales function. The 2026 workforce story should not be merged with the undisclosed 2023 layoff figure.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What readers should take away
- Q1 2023 revenue fell: CDW generated about $5.1 billion, down more than 14% year over year, according to CRN’s earnings-call report.
- Hardware demand was the main problem: Larger commercial customers reduced spending on client devices and related equipment.
- Corporate sales fell more than 17%: The segment reported approximately $2.2 billion in net sales.
- Layoff totals were not published: CDW discussed staffing adjustments but gave no number.
- The headcount increase is not contradictory: The reported 15,300 coworkers included the effect of the Sirius acquisition.
- The downturn was not permanent based on later results: CDW’s official Q1 2026 results reported sales up 9.2% year over year.
FAQ
How much did CDW revenue fall in Q1 2023?
CDW reported approximately $5.1 billion in Q1 2023 revenue, down more than 14% from nearly $6 billion in Q1 2022, according to CRN’s report on the earnings call.
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How many employees did CDW lay off in 2023?
CDW did not disclose the number of employees affected by the staffing reductions discussed during its Q1 2023 earnings call.
Why did CDW’s employee count increase after layoffs?
CDW’s reported coworker count rose slightly to approximately 15,300, principally because the Sirius Computer Solutions acquisition added employees and technical resources.
What caused CDW’s Q1 2023 sales decline?
The primary cause was weaker demand for hardware and client devices, with the largest impact coming from larger commercial customers.
Did CDW’s business recover after Q1 2023?
CDW’s official Q1 2026 results reported $5.680 billion in net sales, up 9.2% year over year, with growth across its reporting segments.
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The Bottom Line
Bottom line: CDW’s Q1 2023 revenue decline was driven mainly by weaker commercial demand for hardware and client devices. The company acknowledged staffing adjustments, but it never disclosed a layoff total. Its quarter-end coworker count rose slightly because of the Sirius acquisition, so claims that the reported employee count fell are inaccurate. Later Q1 2026 results showed that CDW’s sales had returned to year-over-year growth.
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