Dell Technologies has announced yet another reduction in its workforce as part of a broader plan to cut costs.
The changes, confirmed by the Texas-based company in a filing earlier this week, include restrictions in external hiring as well as employee restructuring.
The news comes just over one year after the company laid off around 6,650 workers in February 2023 – the company’s headcount now stands at 120,000.
Dell set to lay off more workers
Dell’s latest layoffs follow a prolonged period of reduced demand for personal computers, which contributed to an 11% decline in revenue during the fourth quarter earnings, posted last month.
Only one week ago we reported that Dell had changed its stance on remote working, revealing that remote workers would not be eligible for promotions unless they return to the office. This news came as a shock given that, in the months following the pandemic-induced rise in hybrid working, CEO Michael Dell spoke out about the benefits of working remotely.
Earlier in February, Dell started pushing more office-based working, introducing a new 39-day-per-quarter office mandate.
While acknowledging short-term hurdles, Dell anticipates an uptick in demand and a more competitive environment in its next fiscal year, however the company also revealed concerns about rising costs amid a changing landscape, with the tech giant having terminated its deal with VMware in the wake of major Broadcom changes.
In Q4 2023, Dell held a 15.2% share in the global PC market, down year-over-year from 17.1% (via Canalys).
Looking ahead, industry experts, including analysts at Canalys, forecast significant growth in the AI-capable PC sector, which could leave Dell in a good position to regain some market share.
A Dell spokesperson told TechRadar Pro: "On March 25, we filed our FY24 10-K that reflects our operations for the last fiscal year and our ongoing commitment to assessing our business to ensure we’re competitive and set up to deliver the best innovation, value and service to our customers and partners."
Via Reuters
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