In its latest filing, the company said it continued to execute cost management measures, “including limiting external hiring, employee reorganizations, and other actions.”

Reflecting a wider industry trend, Dell has revealed workforce reductions, attributing this decision to the ongoing macroeconomic environment that continues to affect demand across the sector.

In its latest filing, the company said it continued executing cost management measures, “including limiting external hiring, employee reorganizations, and other actions” to align its investments with strategic priorities and customer needs.

These actions resulted in a reduction in overall headcount. As of February 2, 2024, the employee count stood at approximately 120,000, declining from the 133,000 recorded in February 2023.

This workforce adjustment is part of a wider wave of layoffs within the technology sector. In 2024 alone, 168 tech companies have collectively laid off 42,324 employees. Notably, significant layoffs have occurred at leading firms, including Cisco, Microsoft, and Google.

Significantly, this comes after Dell’s recent announcement of a stringent return-to-office policy. The company has stated that employees who prefer to work entirely from home will not be considered for promotions or role changes.

Medium to long-term strategy

Analysts point out that while several tech companies are reducing their workforce, Dell is one of the few who has recorded weak financial performance. Fourth quarter revenue was down 11 percent year on year.

“There are primarily two points to consider here,” said Pareekh Jain, CEO of EIIRTrend & Pareekh Consulting. “First, Dell’s financial results reflect a slowdown in PC demand, leading them to adjust their cost structure. During the pandemic time, many companies inflated their cost structures in anticipation of growth and demand that didn’t materialize. The second point is that while we’re seeing significant layoffs across Silicon Valley and IT companies worldwide, most still report good results, unlike Dell.”

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