It seems that more and more people lost their jobs last year. In the last round of layoffs, Dell laid off more than 6,000 workers. By the end of February, Dell had about 120,000 employees, 10% less than the previous year’s headcount. This brings the total number of layoffs at Dell to over 13,000 in the past twelve months. Dell joins Meta, Google, and Microsoft, which each laid off over 10,000 employees within the last 12 months.
The layoffs at Dell have mainly been triggered by the slow demand in the PC industry, which has led to a drop in revenue for most companies in this sector. Dell’s recent earnings report showed a year-over-year revenue drop of over 11%. So, it’s no surprise they’re further trying to cut costs by reducing their workforce expenses. In addition to the layoffs, Dell has scaled back on any form of external hiring to further minimize human resource costs.
Dell is now counting on the spike in demand for their AI-optimized servers, which have significantly contributed to their revenue. The increase in demand for these servers has also attracted renewed investor interest in Dell, leading to a rise in the company’s market cap by over 52% in the past year. The company now hopes to fully capitalize on the AI boom to achieve further growth, not only in market valuation but also in revenue.
