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Dell Cuts 11,000 Jobs Amid AI Server Boom
17 Mar
Summary
- Dell's workforce decreased by approximately 10% in fiscal year 2026.
- The company reported $569 million in severance payments for fiscal 2026.
- Dell anticipates revenue from AI-optimized servers to double in fiscal 2027.
Dell's workforce saw a significant reduction of approximately 10%, equating to 11,000 employees, during fiscal year 2026. This decrease, bringing the total employee count to about 97,000 as of January 31, 2026, reflects the company's strategy to control costs by limiting external hiring.
The company incurred $569 million in severance payments for fiscal year 2026, a decrease from the $693 million reported in the previous year. This period of workforce reduction occurs as many tech companies face increased concerns over AI disruption, with over 38,000 employees laid off across 60 tech firms this year.
Looking ahead, Dell projects substantial growth in its AI-optimized servers business, with revenue expected to double in fiscal year 2027. The company also recently announced a 20% increase in its cash dividend and an additional $10 billion allocated for its share repurchase program.
