Dell workforce shrinks by 10% for third consecutive year

Dell’s workforce has fallen by 10% for a third year in a row, according to annual reports filed Monday. 

As of Jan. 30, the Texas-based tech giant reported a headcount of 97,000 employees, down roughly 11,000 from its previous year of 108,000. 

The reductions were primarily driven by cost-cutting measures, including employee reorganizations, restricted external hiring and facility consolidation to better align investments.

“Throughout Fiscal 2026, we remained committed to disciplined cost management in coordination with our ongoing business modernization initiatives and continued to take certain measures to reduce costs,” the company said. 

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Over the years, Dell has implemented numerous cost-cutting measures, including employee reorganizations, restrictions on external hiring and other steps to better align its investments with strategic and customer priorities.

In its most recent reports, Dell highlighted the extensive integration of AI and machine learning technologies across its operations, including IT management, software solutions and the use of specialized servers.

Dell, whose shares have risen roughly 20% so far this year, said in February the company expects revenue from its AI-optimized server orders to double by 2027.

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According to its fiscal 2026 report, Dell recorded total severance charges of $569 million, compared with $693 million in 2025 and $648 million in 2024. These payments primarily affected the selling, general and administrative departments, followed by cost of net revenue and research and development each year.

While Dell reported a staff count of 97,000 in 2026, the company had 133,000 employees in 2023. 

In 2023, Dell announced a workforce reduction of roughly 5% to navigate a challenging global economic environment.

The following year, Dell’s headcount fell by 13,000, a 9.8% decrease in its workforce.

In 2025, Dell again recorded a 10% reduction in staff, representing 12,000 fewer employees. 

Most recently, the company reported a 10.2% decline in 2026.

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Silicon Valley workers have grown increasingly concerned about AI-driven disruption as tech companies such as Meta and Oracle have reportedly planned mass layoffs.

Earlier this month, Meta reportedly considered a massive 20% workforce reduction as AI infrastructure spending continues to rise. Oracle has also reportedly weighed cutting tens of thousands of jobs amid soaring AI spending and mounting financial pressures.

Reuters has also linked workforce decline to the demands of competing in the high-growth AI infrastructure sector, pressuring companies to offset expenses.

Reuters contributed to this report.