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Dell's Workforce Reduction: 6,000 Employees Fired As Cost-Cutting Measure

The latest reduction in workforce is a component of Dell's broader initiative to simplify its operations and reduce expenses amid persistent market difficulties.

Dell's Workforce Reduction: 6,000 Employees Fired As Cost-Cutting Measure File Photo

New Delhi: Dell, an American technology company has acknowledged downsizing its workforce as part of cost-cutting measures. It has reduced its workforce for the second time in the past two years.

According to a recent filing, the company has trimmed approximately 6,000 more employees from its staff. According to a Reuters report, Dell's employee count stood at nearly 120,000 as of February 2, 2024, marking a decrease from its previous total of 126,000 employees. (Also Read: Mumbai Overtakes Beijing As Asia's Billionaire Capital; Ranks In World's Top Three)

The job cuts follow a period of slow demand for personal computers over the last two years, resulting in an 11 percent revenue decrease in the final quarter of last year, as disclosed in the filing via Reuters. Dell has also implemented additional cost-saving measures such as restricting external hiring and reorganizing employees in addition to reducing its workforce. (Also Read: Bharti Hexacom IPO: Here Are 10 Key Points You Want To Know)

In 2023, the company cut 6,650 jobs in preparation for a potential economic downturn and in response to declining demand for personal computers. The latest reduction in workforce is a component of Dell's broader initiative to simplify its operations and reduce expenses amid persistent market difficulties.

Recently, The company communicated through a memo to its remote employees that while they are allowed to continue their work-from-home arrangements, they will not be eligible for promotions. The technological company has informed its employees that starting May, they would be classified as either "hybrid" or "remote" based on the new policy.