September 11, 2024 – Dell has announced plans to continue its cost-cutting measures by implementing further layoffs this year. The company stated that due to external hiring practices, job reorganizations, and other constraints, it expects a “continued reduction in headcount” for the fiscal year ending in February 2025.
Dell revealed that it is aggressively expanding its sales of high-performance servers for AI applications, which require costly chips. While the increased proportion of AI server sales in the recent quarter has hurt profit margins, the company noted a profit improvement compared to the previous quarter.
On August 30th, Dell reported second-quarter revenue of $12.4 billion, representing a 4% decline from the same period last year and slightly missing expectations. The company’s commercial PC revenue remained largely unchanged, while consumer PC revenue fell by 22%.
In a regulatory filing, Dell stated, “We remain committed to rigorous cost management to align with our ongoing business transformation initiatives and will continue to take certain actions to reduce costs.” The company declined to comment beyond the contents of the filing.
Earlier this year in June, Dell implemented layoffs within its sales department, although the exact number of affected employees was not disclosed. The company recorded a severance charge of $328 million during the quarter. As of February this year, Dell had approximately 120,000 full-time employees worldwide.
