Dell Reduces Workforce Again, Citing Cost Management and Restructuring Efforts

By Madelaine Panganiban

Published: Mar 18 2026, 08:40 AM EDT

Dell Cuts Its Workforce as Part of Broader Initiative to Reduce Costs After Sluggish Demand in PC Market — Dell revealed in a filing that it has reduced its workforce as part of its broader strategy to cut expenses. PAU BARRENA / AFP via Getty Images

Dell Technologies has reduced its workforce for the third straight year, continuing a steady push to cut costs and restructure its business.

In its latest annual filing, the company reported that its employee count dropped to 97,000 as of late January, down from about 108,000 the year before.

According to Business, the roughly 11,000-job decline marks another 10% reduction, following similar cuts in 2024 and 2025.

Over a three-year period, Dell's workforce has shrunk significantly, falling from around 133,000 employees in 2023.

The company said the cuts were part of ongoing efforts to manage expenses and modernize operations.

"Throughout Fiscal 2026, we remained committed to disciplined cost management in coordination with our ongoing business modernization initiatives," Dell stated in its report.

These actions included reorganizing teams, limiting new hiring, and consolidating facilities.

Dell workforce shrinks by 10% for third consecutive year https://t.co/uANfU16Y9x
— FOX Business (@FoxBusiness) March 18, 2026

Dell Technologies Cuts Jobs Gradually

Dell's approach has been more gradual compared to other tech firms, but the pattern is clear. Each year, the company has trimmed its workforce while adjusting its strategy to stay competitive.

In 2023, it cut about 5% of its staff due to economic pressures. That was followed by a nearly 10% reduction in 2024 and another similar drop in 2025, Fox Business reported.

At the same time, Dell is investing heavily in artificial intelligence and advanced technologies.

The company highlighted increased use of AI and machine learning across its systems, including IT management and software tools.

It also reported strong growth in its infrastructure business, where demand for AI-focused servers is rising.

Earlier this year, Dell said it expects revenue from AI-optimized servers to double by 2027. This shift shows how the company is focusing more on high-growth areas, even as it cuts costs elsewhere.

The financial impact of the job reductions is also notable. Dell recorded $569 million in severance costs in 2026, lower than the $693 million reported in 2025 and $648 million in 2024.

Most of these costs were tied to administrative roles, along with some positions in product development and operations.