Brody Ford
Tue, March 26, 2024
(Bloomberg) -- Dell Technologies Inc. cut 13,000 employees over the last fiscal year, a steeper reduction in headcount than initially announced.
Dell had 120,000 employees globally as of Feb. 2, the technology hardware maker said Monday in a filing. That’s down nearly 10% from the previous year. “Throughout Fiscal 2024, we continued to take certain measures to reduce costs,” Dell said in the filing. “Despite these difficult decisions, we continue focused efforts to empower our employees and attract, develop, and retain talent.”
Weak sales of personal computers prompted an announcement at the start of 2023, when Dell executives said they would cut about 6,650 roles. Ultimately, nearly twice as many were eliminated over the course of fiscal 2024.
Bloomberg Intelligence’s Woo Jin Ho wrote that the move “provides modest operating leverage, and upside to PC or non-AI infrastructure sales could yield better earnings.” A Dell spokesperson said the disclosure reflects “ongoing commitment to assessing our business to ensure we’re competitive and set up to deliver.”
While known for its PC business, Dell has attracted investor attention over the last year due to a spike in interest for its high-powered servers needed to run AI workloads. Its shares are near a record high after reporting customer interest in “AI-optimized servers.”
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