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Dell Technologies announced yet another round of layoffs earlier this week, terminating approximately 6,000 employees. This move adds to the tech giant’s significant reduction in headcount, which amounted to 13,000 employees over the last fiscal year, surpassing the initially projected numbers.
The layoffs are part of Dell’s broader cost-cutting initiative, which includes measures such as limiting external hiring, implementing employee reorganizations, and team restructuring. This decision comes in response to sluggish demand for personal computers, which led to an 11 percent drop in revenue in the fourth quarter of the previous year.
As of February 2, Dell reported having 120,000 employees globally, representing a nearly 10 percent decrease from the previous year. The company emphasized its ongoing efforts to reduce costs while focusing on empowering employees and attracting, developing, and retaining talent.
Weak sales of personal computers prompted Dell executives to announce job cuts at the start of 2023, initially targeting approximately 6,650 roles. However, the number of job eliminations throughout fiscal 2024 was nearly twice as many.
Despite the challenges, Dell anticipates net revenue growth in its Client Solutions Group for the current year, albeit amid expectations of rising input costs and ongoing reductions in net revenue from other business segments due to changes in its relationship with VMware.
Additionally, Dell is canceling work from home and instead implementing a new return-to-office policy, categorizing workers as ‘hybrid’ or’remote’ to exclude remote employees from consideration for promotions or role changes within Dell.
While Dell was previously known for its hybrid work culture, recent policy changes have affected remote workers. A recent report revealed that remote workers seeking promotions must transition to a hybrid work model and attend at least three days per week in an office. This shift has raised employee concerns regarding career growth opportunities and reduced flexibility.
In contrast, a study cited by Bloomberg highlights the revenue growth potential of companies offering flexible work-from-home options. Companies with fully flexible remote work policies experienced a 21 percent increase in sales between 2020 and 2022, compared to just a 5 percent revenue growth among companies with hybrid or entirely onsite work setups during the same period.
