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Workforce Reduction

Dell Cuts 10% of Global Workforce to Save Costs amid Rising AI Competition

March 27, 2025

Workforce Reduction

Dell Cuts 10% of Global Workforce to Save Costs amid Rising AI Competition

March 27, 2025

Photo by Its me Pravin on Unsplash

Dell Technologies (DELL) has cut its global workforce by 10% in Fiscal 2025, reducing its employee count to about 108,000 from 120,000 the year before. This is part of its ongoing efforts to save costs through limited hiring and employee restructuring.

The job cuts come amid challenges in the AI server market, where rising production costs and intense competition are hurting profits. In February, Dell forecasted a decline in adjusted gross margins for Fiscal 2026, pointing to tough market conditions.

Importantly, the latest job cuts follow a 5% workforce reduction in the previous fiscal year, reflecting Dell’s consistent efforts to improve efficiency.

Dell’s DEI Stance Contrasts with Rivals

Despite these reductions, Dell remains focused on diversity and inclusion, showing its commitment to equal job opportunities and fair policies. The company’s move contrasts with its rivals, such as Meta Platform (META) and Alphabet (GOOGL), which are scaling back their diversity initiatives.

The cuts in DEI programs started after it faced criticism from U.S. President Donald Trump, who has labeled them discriminatory. In January, he issued executive orders to ban DEI programs across federal agencies, the military, and private contractors.

DELL Stock Seems Undervalued, Says Five-Star BofA Analyst

A Top-rated analyst, Wamsi Mohan from Bank of America Securities, has reiterated a Buy rating to DELL stock, citing its strong position in the AI market, strategic partnerships, and financial strength.

Also, the analyst noted that a dividend increase of 18% and a $10 billion buyback reflect its commitment to return shareholder value. Despite a 14% drop in share price this year, Mohan believes Dell trades at a modest 9.5x expected 2026 earnings, hinting at possible undervaluation.

Mohan has assigned a price target of $150 to Dell stock, which implies an upside potential of about 51.7% from the current level.

Is Dell a Good Stock to Buy Now?

Turning to Wall Street, DELL stock has a Strong Buy consensus rating based on 12 Buys and three Holds assigned in the last three months. At $137.36, the average Dell Technologies stock price target implies a 38.94% upside potential.

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Read full article here

Dell Technologies (DELL) has cut its global workforce by 10% in Fiscal 2025.
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