Dell has reduced its workforce as part of its broader strategy to cut expenses, which also includes restricting external recruiting and reorganizing employees, the company said in a filing on Monday. 

Dell Workforce Shrinks

Its workforce reportedly shrank to about 120,000 as of February 2 from 126,000 the previous year. The company's fourth-quarter results, released last month, reported an 11% revenue decline, which led to the layoffs.

Last year, Dell laid off 6,650 workers as it prepared for a possible recession and saw a decline in demand for personal computers (PCs). The company's PC sales had reportedly been stagnant for almost two years.

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Dell's Outlook

According to Reuters, Dell anticipates net sales growth throughout the year in its client solutions group (CSG), which houses PCs. Notably, revenue for the division dropped 12% in the fourth quarter.

Despite Dell's warning about impending difficulties, the business anticipates a more competitive price environment and improved demand in the fiscal year 2025. 

Nevertheless, due to the shift in its commercial relationship with VMware, the firm anticipates an increase in input costs and the continuous decline of net income from its other operations.

To prepare for its 2018 market comeback, Dell repurchased shares linked to its investment in software producer VMware. Last year, chipmaker Broadcom completed the $69 billion purchase of VMware.

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