Dell Technologies Announces Workforce Reduction of 6,000 Employees

Dell Technologies has announced a significant reduction in its workforce through a filing, with approximately 6,000 employees affected by the decision. This move comes as part of the company's ongoing efforts to streamline operations and align investments with strategic priorities, according to the filing. As of 2 February 2024, Dell Technologies reported a total workforce of around 120,000 employees, which down from nearly 126,000 employees reported last year.

The company said in its filing that throughout Fiscal 2024, Dell Technologies implemented various measures to reduce costs, including limiting external hiring, restructuring employee roles, and other actions aimed at optimizing investments. As a result of these efforts, there has been a decrease in the overall headcount.

Despite the challenging decisions, Dell Technologies says that it remains committed to supporting its employees. The company emphasizes its efforts to empower its workforce and attract, develop, and retain talent amidst the changes.

Looking ahead, Dell Technologies anticipates improvements in the demand environment for Fiscal 2025. The company expects net revenue growth for the full fiscal year, driven by several factors. This includes growth in Infrastructure Solutions Group (ISG) net revenue, fueled by AI-optimized servers and increasing demand for traditional servers and storage offerings.

Additionally, the Client Solutions Group (CSG) is expected to see net revenue growth, partially due to the anticipated PC refresh cycle in the latter part of Fiscal 2025. However, Dell Technologies foresees a continued reduction in net revenue from other businesses due to changes in its commercial relationship with VMware.

Despite the workforce reduction and near-term challenges, Dell Technologies remains optimistic about its future prospects. The company continues to prioritize strategic initiatives while adapting to evolving market conditions to drive growth and innovation.