Dell Technologies recently announced workforce reductions as part of a broader strategy aimed at cutting costs, according to a filing released on Monday. The company revealed that it had streamlined its workforce limited external hiring and reorganized employees as part of its cost-cutting initiative.
As of February 2, 2024, Dell’s workforce stood at nearly 120,000 employees down from approximately 126,000 employees a year earlier. These layoffs come on the heels of sluggish demand for Dell’s personal computers which has persisted for nearly two years and contributed to an 11% decline in revenue during the fourth quarter of the previous fiscal year.
Despite the challenges faced by its client solutions group (CSG) particularly in the PC segment where revenue fell by 12% in the fourth quarter, Dell remains optimistic about future prospects. The company expects net revenue in the CSG to grow over the entire fiscal year and anticipates an improvement in demand and a more competitive pricing environment in fiscal year 2025.
However, Dell also cautioned about potential near-term challenges and acknowledged the likelihood of increased input costs. Additionally, the company noted the impact of changes in its commercial relationship with VMware which could result in a continued reduction in net revenue from other business segments.
Last year, Dell initiated significant job cuts eliminating 6,650 positions as it prepared for a potential economic downturn and faced declining demand for personal computers. The company’s actions reflect its ongoing efforts to adapt to market dynamics and maintain competitiveness in the technology industry.
