DELL

Company announced new reduction in its workforce

In an official document released on Monday (25), Dell announced a new reduction in its workforce as part of a broader initiative to cut costs. As reported by Reuters, the company has limited external hiring and must reorganize its staff.

As of February 2024, Dell has fewer than 120,000 employees, down from about 126,000 the previous year;

Part of this cut was carried out in 2023, when the company announced a mass layoff of at least 6 thousand employees;

The new adjustments come as demand for its personal computers has been weak for nearly two years, which contributed to an 11% drop in revenue in fourth-quarter earnings released last month;

Dell did not specify how the new reduction will affect employees — many companies are optimizing sectors this year, which has resulted in staff cuts.

While Dell cautioned against near-term challenges, the company expects demand to improve and the pricing environment to be more competitive in fiscal 2025.

However, the company added that input costs are expected to increase and, as a result, there is likely to be “a continued reduction in net revenue from our other businesses as a result of the change in our business relationship with VMware [the software maker of which Dell owns shares]”.

In February 2023, Dell announced the layoff of 6,650 employees, about 5% of its workforce globally. The decision was motivated by the low demand for PCs recorded in the quarter.

At the time, it operated with hiring freezes and travel restrictions to reduce costs.

The company's CEO, Jeff Clarke, believes the restructuring will help increase the company's efficiency.

mundophone