Dell workforce drops 10% in fiscal 2026, filing shows

Dell’s total workforce declined by about 10%, or 11,000 ​employees, in fiscal 2026, it said ‌on Monday, a sign that ​the AI server maker ⁠is limiting external hiring to reduce costs.

The company spent $569 million in severance payments ‌in this period, compared with $693 million a year ago, ‌its annual report showed.

Dell had ‌about ⁠97,000 employees as of January ⁠31, down from about 108,000 employees a year ago. Its workforce had declined by ​about 10% in ‌fiscal 2025.

Silicon Valley employees have grown increasingly concerned about AI disruption in recent months as 60 ‌tech companies have laid off ​more than 38,000 employees this year, according to Layoffs.fyi, a ⁠website tracking sector-wide job cuts.

Reuters reported on Friday that social ‌media giant Meta was planning a sweeping layoff that could affect 20% or more of its workforce.

Dell, whose shares have risen over 24% so far this ‌year, said last month that it expects ​revenue from its key AI-optimised servers business to double in ⁠fiscal year 2027.

In February, it announced ⁠a 20% hike in its cash dividend and an additional $10 ‌billion for its share repurchase program.