Dell Cuts Workforce by 10% Despite Rising AI Server Demand
U.S. technology company Dell Technologies has reduced its workforce despite growing demand for artificial intelligence (AI) servers. According to a document published on Monday (16 March), the company’s total employee count declined by 10 percent, or 11,000, in the 2026 fiscal year, Reuters reported.
According to the company’s annual report, Dell’s workforce stood at approximately 97,000 as of 31 January, down from about 108,000 the previous year. During this period, the company spent $569 million on severance payments, compared to $693 million in the previous year.
In recent months, concerns have grown among Silicon Valley employees about job losses driven by AI. Data from the Layoffs.fyi website shows that more than 38,000 employees have been laid off by 60 technology companies so far this year. Last week, reports also emerged that Meta is planning to cut more than 20 percent of its workforce.
Dell’s shares have risen by more than 24 percent this year. Last month, the company stated that it expects revenue from its AI-optimized server business to double by the 2027 fiscal year. In February, Dell also announced a 20 percent increase in its cash dividend and unveiled an additional $10 billion share repurchase program.
This trend in the technology sector indicates that companies are reducing workforce numbers to cut costs while simultaneously boosting efficiency through AI-driven systems and automation.
DBTech/BMT/OR
