Dell Technologies Cuts Workforce by 11,000 Amid Cost Management Strategy
Dell Technologies Workforce Reduction
In the fiscal year 2026, Dell Technologies has made significant cuts to its workforce, reducing its global employee count by approximately 11,000, which is nearly 10% of its total personnel. This information was disclosed in the company's recent annual 10-K filing, indicating a decrease in headcount from around 108,000 in January 2025 to about 97,000 by January 31, 2026. The filing also revealed that Dell allocated USD 569 million for severance payments, a decision aligned with its ongoing strategy for disciplined cost management.
According to the filing, the severance expenses for fiscal 2026 were lower than the USD 693 million spent in the previous year. Dell emphasized its commitment to maintaining disciplined cost management while pursuing business modernization efforts. The company has implemented various measures to cut costs, including employee reorganizations and restrictions on external hiring, to better align investments with its strategic goals and customer priorities.
This workforce reduction aligns with a broader trend in the tech industry, where numerous companies are also restructuring and cutting costs, often citing increased investments in artificial intelligence as a driving factor. Data from Layoffs.fyi indicates that over 39,000 jobs have been eliminated across approximately 66 tech firms in 2026 alone. Additionally, reports suggest that Meta may also be considering layoffs that could impact a substantial number of its employees.
Dell's Headcount Decline Over Three Years
As per filings with the US Securities and Exchange Commission (SEC), Dell Technologies has seen a 27% reduction in its workforce from Fiscal Year 2023 to Fiscal Year 2026. The total number of employees has decreased from 133,000 in Fiscal Year 2023 to 97,000 in Fiscal Year 2026. In Fiscal Year 2024, the company had around 120,000 employees, marking a 10% drop from the previous year, and in Fiscal Year 2025, the headcount was approximately 108,000, also down by 10% from the prior fiscal year.