Dell to Cut Jobs in 2024 in Effort to Lower Employee Expenses
(Reuters) – Dell Technologies reduced its workforce as part of a broader cost-cutting initiative that included limiting external hiring and employee restructuring, it said in a filing on Monday.
On February 2, 2024, it employed almost 120,000 employees, compared to approximately 126,000 a year earlier.
The layoffs came after sluggish demand for its personal computers for nearly two years partly contributed to an 11 percent drop in revenue in its fourth-quarter results released last month.
Dell expects net sales at its Customer Solutions Group (CSG), the home of PCs, to grow for the full year, it said on Monday. The segment’s turnover decreased by 12% in the last quarter.
Although Dell warned of near-term challenges, the company expects demand to improve and the pricing environment to be more competitive in fiscal year 2025.
However, the company expects input costs to rise, adding that “the continued decline in net income from our other businesses as a result of the change in our commercial relationship with VMware.”
Dell bought back shares tied to its ownership of software maker VMware, paving the way for it to return to the market in 2018. Chipmaker Broadcom completed its $69 billion purchase of VMware last year.
Last year, Dell cut 6,650 jobs in anticipation of a possible recession and declining demand for personal computers.
