Dell Implements Workforce Reductions as Part of Cost-Cutting Measures
- tech360.tv
- Mar 26, 2024
- 2 min read
Dell Technologies has reduced its workforce as part of cost-cutting measures. The company has limited external hiring and implemented employee reorganizations. Dell's employee count has decreased from 126,000 to nearly 120,000.
Dell Technologies has announced a reduction in its workforce as part of a broader initiative to cut costs. The company has implemented measures such as limiting external hiring and employee reorganizations, according to a filing made on Monday.
As of February 2, 2024, Dell's employee count stood at nearly 120,000, down from approximately 126,000 the previous year. These layoffs come as a response to sluggish demand for personal computers, which has contributed to an 11% drop in revenue during the fourth quarter of last year.
Despite the challenges faced, Dell remains optimistic about the future. The company expects net revenue in its client solutions group (CSG), which includes PCs, to grow throughout the year. However, the segment's revenue experienced a 12% decline in the fourth quarter.
Looking ahead, Dell anticipates an improvement in demand and a more competitive pricing environment in fiscal year 2025. Nevertheless, the company also foresees an increase in input costs and a continued reduction in net revenue for its other businesses due to changes in its commercial relationship with VMware.
In 2018, Dell repurchased shares tied to its interest in software maker VMware, allowing it to potentially return to the market. Last year, chipmaker Broadcom completed its $69 billion acquisition of VMware.
This is not the first time Dell has implemented job cuts. In anticipation of a potential recession and dwindling demand for personal computers, the company slashed 6,650 jobs last year.
Dell Technologies has reduced its workforce as part of cost-cutting measures.
The company has limited external hiring and implemented employee reorganizations.
Dell's employee count has decreased from 126,000 to nearly 120,000.
Source: REUTERS
