Dell Trims Workforce by Approximately 6,000 Employees
Dell offloaded a significant number of employees in the past 12 months, a filing by the company reveals. The company resorted to parting ways with a minor chunk of its workforce to help its financial bottom line.
- Dell offloaded a significant number of employees in the past 12 months, a filing by the company reveals.
- The company resorted to parting ways with a minor chunk of its workforce to help its financial bottom line.
American consumer and enterprise tech major Dell has reduced its workforce by 4.76% in the past year. According to a Dell filing seen by Reuters, the company slashed jobs to support its balance sheet and the strained demand for PCs. The company had 120,000 employees in February 2024, down from 126,000 a year ago.
Dell trimming down its workforce corresponds with lower revenue, down 11% year-over-year (YoY) in Q4 2023. The tepid recovery in the consumer PC segment has affected the company. The company’s revenue from the Client Solutions Group (CSG) saw a 12% decline YoY in Q4 2023, which is less than the 5% decline this division quarter-over-quarter, indicating that the layoffs helped to some extent.
However, Dell is making strategic leaps in AI-focused servers, especially on-premise ones, which is reflected in the performance of the company’s Infrastructure Solutions Group (ISG) – up 10% QoQ and down 6% YoY.
So, while cost-cutting through leaner teams is one way to go, Dell is positive about the future AI-centric demands. “Our strong AI-optimized server momentum continues, with orders increasing nearly 40% sequentially and backlog nearly doubling, exiting our fiscal year at $2.9 billion,” said Jeff Clarke, vice chairman and chief operating officer of Dell Technologies.
See More: Job Losses Mount as New Round of Layoffs Hits Tech Sector
“We’ve just started to touch the AI opportunities ahead of us, and we believe Dell is uniquely positioned with our broad portfolio to help customers build GenAI solutions that meet performance, cost and security requirements.”
A part of Dell’s future strategy is an exciting new collaboration with NVIDIA, which was announced at GTC 2024, to cater to the 100x surge in AI-driven demand it expects for data centers and to build the Dell AI Factory.
A slump in PC demand also forced Dell to axe almost 6,650 workers early in 2023. So far, in 2024, 219 tech companies have laid off 50,841 employees, per Layoffs.fyi data, equating to almost 16,947 employees handed the pink slips per month. Comparatively, 2023 was significantly worse, with 21,931 employees shown the door per month, taking the total number of employees laid off in the year to 263,180.
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