Dell revealed in its filing on Monday that it has dismissed 6,000 employees from its global workforce since last year amid a revenue slowdown for nearly two years now.
First reported by Reuters, Dell said the layoffs are part of its efforts to cut down costs after an 11% revenue drop to during its fourth quarter despite considering itself a beneficiary of the AI boom.
(Photo : Justin Sullivan/Getty Images)
The computer manufacturer said it has also limited external hiring and initiated employee reorganization as it braces for slower growth this year.
Dell, however, expected better demand and competition for next year.
CFO Yvonne McGill earlier said in a post-earning call that the company remains "bullish on the coming PC refresh cycle and the longer-term impact of AI on the PC market."
Dell's shares are up by 0.68% following the record filing.
Also Read: IBM Lays Off Staffers in Marketing, Communications Division Amid AI Transition
Tech Industry Layoff Continues in March
Dell's announcement continues the growing number of layoffs in the tech industry since the massive job cuts last January as more companies turned to AI to reduce costs.
Industry watchdog Layoff.fyi reported that more than 50,800 workers have already been laid off since the start of 2024. At least 219 companies have been reported to conduct job cuts.
The number of layoffs is at least nearly one-fifth of the total layoffs last year which has racked up to 263,180 jobs eliminated, the largest yet.
Related Article: Silicon Valley Laid Off Nearly 25,000 Workers in January Alone
Dell Cashes into the AI Trend
Like other legacy tech companies, Dell has fully jumped into the trend by rolling out more AI data management and storage networks for other large language models.
The computer manufacturer also declared collaboration with NVIDIA to build its own AI factory to boost its digital solutions services amid the hype the technology is generating in the industry.
The hardware manufactured from the planned factory is expected to power its flagship PowerEdge XE9680 server to help NVIDIA host its new AI accelerators.
Dell has been among the legacy companies like Oracle who have slowly transitioned into AI-powered services after their main hardware business has stagnated against much faster computers.
