Dell Technologies has reduced its workforce by 10.2% for the third year in a row, as part of ongoing cost-cutting and business modernization efforts, according to the company’s fiscal 2026 report released Monday. The Texas-based tech giant’s employee count fell to 97,000 as of January 30, 2026, down from 108,000 in 2025 and significantly lower than 133,000 in 2023.
Workforce Reductions Driven by Cost Management and Restructuring
The latest reductions primarily result from employee reorganizations, restrictions on external hiring, and consolidation of facilities aimed at better aligning Dell’s investments with strategic priorities. Dell stated it continued disciplined cost management throughout fiscal 2026 to support its business modernization initiatives.
The company reported severance charges of $569 million in fiscal 2026, down from $693 million the previous year and $648 million in 2024. These costs mainly impacted the selling, general and administrative departments, followed by research and development.
AI Integration and Revenue Outlook
Despite workforce cuts, Dell highlighted the accelerated integration of artificial intelligence (AI) and machine learning technologies across its operations, including IT management and software solutions. Dell expects its revenue from AI-optimized server orders to double by 2027, signaling a focus on AI infrastructure amid industry competition.
The workforce reductions at Dell coincide with similar trends in the tech sector, where companies like Meta and Oracle are also planning or implementing large-scale layoffs influenced by rising AI infrastructure costs and financial pressures.
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