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Dell’s workforce fell 10% for the third year in a row, according to annual reports released Monday.
As of January 30, the Texas-based tech giant reported a workforce of 97,000 employees, down about 11,000 from the previous year (108,000).
The reductions were primarily the result of cost-saving measures, including employee reorganizations, limited external hiring and consolidation of facilities to better align investments.
“During fiscal year 2026, we remained committed to disciplined cost management in coordination with our ongoing business modernization initiatives and continued to implement certain measures to reduce costs,” the company said.
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The exterior of a Dell Technologies office building, January 4, 2023, in Round Rock, Texas. (Brandon Bell/Getty Images/Getty Images)
Over the years, Dell has implemented numerous cost-saving measures, including employee reorganizations, restrictions on hiring external workers and other steps to better align its investments with strategic and customer priorities.
In its latest reports, Dell highlighted the extensive integration of AI and machine learning technologies into its operations, including IT management, software solutions and the use of specialized servers.
Dell, whose shares are up about 20% so far this year, said in February that the company expects revenue from its AI-optimized server orders to double by 2027.
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The Dell Technologies logo is prominently displayed in the company’s pavilion during Mobile World Congress in Barcelona, Spain, March 5, 2026. (Joan Cros/NurPhoto via Getty Images/Getty Images)
According to its fiscal 2026 report, Dell recorded total severance payments of $569 million, compared to $693 million in 2025 and $648 million in 2024. These payments were primarily related to sales, general and administrative departments, followed by net revenue and research and development costs per year.
While Dell reported a workforce of 97,000 in 2026, the company had 133,000 employees in 2023.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| DELL | DELL TECHNOLOGIES INC. | 153.53 | +0.52 |
+0.34% |
In 2023, Dell announced a workforce reduction of approximately 5% to cope with a challenging global economic environment.
The following year, Dell’s workforce fell by 13,000, a workforce decline of 9.8%.
In 2025, Dell recorded another 10% workforce reduction, which equates to 12,000 fewer employees.
The company recently reported a decline of 10.2% through 2026.
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A Dell logo displayed on a smartphone. (Mateusz Slodkowski/SOPA Images/LightRocket via Getty Images/Getty Images)
Silicon Valley workers have become increasingly concerned about AI-induced disruption, as tech companies like Meta and Oracle have reportedly planned mass layoffs.
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Earlier this month, Meta was reportedly considering a massive 20% workforce reduction as spending on AI infrastructure continues to rise. Oracle has also reportedly considered cutting tens of thousands of jobs amid rising AI spending and increasing financial pressure.
Reuters has also linked workforce reductions to competitive demands in the fast-growing AI infrastructure sector, putting pressure on companies to offset costs.
Reuters contributed to this report.
