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Round Rock-based Dell Technologies shrinks its global workforce for second year in a row

  • Dell Technologies, an AI server maker based in Texas, reduced its headcount by 10% in fiscal year 2025, according to its annual report released on Tuesday, bringing the total number of employees to approximately 108,000 as of January 31.
  • This workforce reduction follows a 5% decline reported in fiscal year 2024, and is attributed to cost reduction measures, including limiting external hiring and employee reorganizations, as the company becomes leaner.
  • Since February 2023, Dell has reduced its workforce by approximately 19%, or 25,000 employees, amid a restructuring that included return-to-office mandates and sales division changes to prepare for AI, with employees who chose to remain remote forgoing promotions.
  • In February, Dell also forecast a decline in its adjusted gross margin rate for fiscal year 2026, citing higher costs associated with building AI servers in a fiercely competitive market.
  • Despite these changes and a broader trend of companies rolling back DEI programs amid political scrutiny, Dell Technologies has reaffirmed its commitment to diversity and inclusion, stating, "We are committed to equal employment opportunity" and "We are continuing to implement inclusive policies.
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Channel News Asia broke the news in Singapore on Tuesday, March 25, 2025.
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