Key Points:
- Dell plans to continue workforce reductions through February 2025 to control costs.
- The company will limit external hiring as part of its restructuring efforts.
- Despite a 39% rise in stock, Dell faces a 4% decline in PC revenue.
Dell Technologies is intensifying its cost-control efforts by reducing its workforce as part of a broader strategy to streamline operations and manage expenses.
According to a regulatory filing on Tuesday, Dell confirmed that workforce reductions will continue throughout the fiscal year, which ends in February 2025, alongside external hiring limitations and role reorganizations.
Bloomberg reports that the layoffs were communicated internally, with company executives emphasizing the importance of becoming a leaner organization to focus on critical investments, particularly in artificial intelligence (AI) technologies.
While Dell hasn’t disclosed the exact number of job cuts, reports indicate that the company plans to reduce its global workforce from 120,000 to approximately 100,000.
In the past month, Dell cut 10% of its sales department positions to make way for AI-related roles. According to CRN, Dell implemented two rounds of layoffs in 2023, impacting around 6,650 employees in February. A second round followed in August, although Dell did not publicly release the number of affected positions.
Despite a 4% decline in PC revenue and underwhelming profits from its AI servers, Dell’s stock has risen by 39% this year, driven by investor optimism surrounding its AI-focused initiatives.
As part of its AI shift, Dell has partnered with Nvidia and Microsoft to strengthen its AI product offerings. In May, Dell launched its PowerEdge XE9680L server, equipped with liquid cooling, Blackwell GPUs, and AI-enhanced PCs featuring Qualcomm processors and Microsoft’s Copilot+ AI.
