Dell Workforce Reduction in 2026

Dell’s workforce experienced a decline of approximately 10%, amounting to about 11,000 employees, during fiscal 2026. As of January 31, 2025, the company employed roughly 108,000 individuals. However, findings from its annual 10-K filing for fiscal 2026 indicate a total of 97,000 employees.

Financial Implications of Workforce Cuts

Dell Technologies allocated significant funds for severance packages, amounting to $569 million in fiscal 2026, compared to $693 million the previous year. These figures reflect the ongoing restructuring and workforce reductions within the organisation.

The firm verified the reduction in staff numbers for the financial year as part of its efforts to restructure operations while investing in business modernisation initiatives.

Company Statements on Cost Management

Dell Technologies commented on its approach, stating that throughout fiscal 2026, they focused on disciplined cost management, in tandem with their ongoing business modernisation projects. They implemented several measures to reduce costs, including employee reorganisations, restrictions on external hiring, and other strategies to align investments with their strategic and customer-driven priorities.

Historical Workforce Trends

A review of previous 10-K filings reveals that Dell has been systematically reducing its workforce since fiscal 2023. The company had around 133,000 employees in 2023, falling to approximately 120,000 in 2024. This pattern indicates a steady workforce reduction of nearly 10% annually.

Employee Development Amid Workforce Reductions

The company remarked that these choices have led to a continual decrease in overall headcount. Despite the challenging decisions, Dell remains committed to empowering its workforce and attracting, developing, and retaining talent.

Broader Tech Layoff Trends

This trend aligns with ongoing layoffs within the tech industry, where prominent companies such as Amazon.com Inc., Meta Platforms, and Atlassian Corp. are also reducing staff numbers.

In the early months of 2026, around 40,000 positions were eliminated in the tech sector, highlighting a larger movement toward restructuring operations, managing costs, and shifting resources to artificial intelligence (AI) and automation initiatives.

Recently, there were reports indicating that Meta might reduce its workforce by 20%, potentially impacting about 16,000 employees, although the company has yet to confirm these speculations.