Dell workforce shrinks by 10% for third consecutive year

Core Insights - Dell's workforce has decreased by 10% for the third consecutive year, with a current headcount of 97,000 employees, down from 108,000 the previous year, primarily due to cost-cutting measures [1][8][10] - The company has committed to disciplined cost management and business modernization initiatives throughout Fiscal 2026 [2] - Dell's shares have increased by approximately 20% this year, and the company anticipates that revenue from AI-optimized server orders will double by 2027 [6] Workforce Reduction - Dell's workforce has seen a consistent decline, with a reduction of about 5% in 2023, followed by a decrease of 9.8% in 2024, and a 10% reduction in 2025, totaling a headcount drop from 133,000 in 2023 to 97,000 in 2026 [8][9][10] - The total severance charges recorded by Dell were $569 million in 2026, down from $693 million in 2025 and $648 million in 2024, primarily affecting selling, general and administrative departments [8] Cost-Cutting Measures - Dell has implemented various cost-cutting strategies, including employee reorganizations, restrictions on external hiring, and facility consolidations to align investments with strategic priorities [5][8] - The integration of AI and machine learning technologies has been emphasized across Dell's operations, impacting IT management, software solutions, and specialized server usage [5]