Dell to Further Reduce Headcount to Achieve Cost Control Measures

Dell Technologies is pushing for more workforce reductions this year as part of a broader strategy to manage costs. 

According to Bloomberg, the plan was contained in a Tuesday regulatory filing where Dell confirmed that it would limit external hiring and reorganize roles, leading to ongoing headcount reductions throughout the fiscal year ending in February 2025.

Bloomberg says the layoffs were communicated internally, with executives emphasizing the need for a leaner organization to streamline operations and prioritize investments in AI technologies.

While Dell has not provided a specific figure on how many jobs will be shrunk, reports suggest the plan is to bring its global workforce from 120,000 to around 100,000.

Last month the company shed 10% of jobs within its sales department to make more room for AI-focused positions. Per CRN, Dell conducted two rounds of layoffs in 2023 that affected approximately 6,650 employees in February. The second came in August, though the company did not publicly disclose the number of positions eliminated in that instance.

While the company’s low revenue in personal computers (4%) and disappointing profitability from its AI servers are widely blamed for Dell’s continuous push to trim its workforce, the company still gained a 39% rise in stock this year, driven by investor enthusiasm for its AI initiatives.

Dell’s efforts to pivot towards AI-optimized servers have seen it partner with Nvidia and Microsoft to accelerate its AI offering. Last May, the company introduced the PowerEdge XE9680L server with liquid cooling, Blackwell GPUs, and new AI-powered PCs, featuring Qualcomm processors and Microsoft’s Copilot+ AI.