Updated March 26th, 2024 at 13:55 IST

Dell reduces workforce, cuts costs amid revenue challenges

The decision to reduce the workforce comes in the wake of sluggish demand for its personal computers, which has persisted for nearly two years.

Reported by: Business Desk
Dell | Image:Unsplash
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Dell reduces workforce: Dell Technologies has announced a reduction in its workforce as part of a cost-cutting initiative aimed at streamlining operations. The company revealed in a filing on Monday that it had implemented measures such as limiting external hiring and reorganising its workforce.

As of February 2, 2024, Dell had approximately 120,000 employees, down from about 126,000 a year earlier. The decision to reduce the workforce comes in the wake of sluggish demand for its personal computers, which has persisted for nearly two years and contributed to an 11 per cent drop in revenue in the fourth quarter earnings reported last month.

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Despite the challenges, 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, Dell has cautioned about near-term challenges and expects a more competitive pricing environment in FY25.

Additionally, Dell anticipates an increase in input costs and foresees a "continued reduction of our other businesses' net revenue as a result of the change in our commercial relationship with VMware." Dell had bought back shares tied to its interest in software maker VMware, which was acquired by chipmaker Broadcom for $69 billion last year.

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Last year, Dell also slashed 6,650 jobs as it prepared for a potential recession and faced declining demand for personal computers. The company's recent workforce reduction is part of its ongoing efforts to adapt to changing market conditions and improve its financial performance.

(with Reuters inputs)

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Published March 26th, 2024 at 13:55 IST