Dell Technologies has reduced its workforce as part of a bigger cost-cutting plan that includes limiting external hiring and staff reorganizations, the firm said.
Dell Technologies (DELL.N) decreased its personnel as part of a larger cost-cutting plan that includes limiting external hiring and employee reorganizations, the company said in a filing on Monday.
It employed roughly 120,000 people as of February 2, 2024, down from approximately 126,000 the previous year.
The layoffs follow nearly two years of lackluster demand for its personal computers, which contributed to an 11% dip in revenue in fourth-quarter earnings reported last month.
Dell anticipates net revenue in its client solutions group (CSG), which includes PCs, to expand throughout the year, it said on Monday. The segment’s revenue dropped 12% in the fourth quarter.
While Dell warned about near-term issues, it anticipates demand to increase and the pricing situation to become more competitive in FY 2025.
However, the company expects input costs to climb, as well as a “continued reduction of our other businesses’ net revenue as a result of the change in our commercial relationship with VMware.”.
Dell repurchased shares related to its investment in software firm VMware, setting the stage for its return to the market in 2018. Chipmaker Broadcom (AVGO.O) finalized its $69 billion acquisition of VMware last year.
Dell cut 6,650 positions last year as it braced for a potential recession and falling demand for personal computers.
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