Dell Reports 10% Workforce Reduction in Fiscal Year 2025

Dell Technologies has reported a 10% reduction in its workforce for the fiscal year 2025. According to the company’s annual report released on Tuesday, its total employee count had dropped to approximately 108,000 as of January 31, down from 120,000 the previous year. The company attributed this decline to cost-cutting measures, including hiring limitations and workforce restructuring. Reuters reported the development.

Despite these reductions, Dell reaffirmed its commitment to diversity and inclusion initiatives. The report stated, "We remain committed to equal employment opportunities and will continue implementing inclusive policies that support Dell Technologies’ mission."

Meanwhile, former U.S. President Donald Trump has criticized Diversity, Equity, and Inclusion (DEI) policies as discriminatory and has urged the Justice Department to investigate whether such initiatives violate the law. Companies like Meta and Alphabet have already rolled back their DEI programs.

Dell had also reduced its workforce by approximately 5% in the fiscal year 2024.

Additionally, in February, the company warned that its consolidated gross margin could decline in the fiscal year 2026 due to the high costs associated with building artificial intelligence (AI) servers. Dell is facing significant financial pressure amid intense competition in the AI server market.