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2w ago

Dell Confirms 11,000 Job Reduction in FY2026, Cutting Workforce to 97,000

A new SEC filing ties the cuts to a modernization push focused on AI infrastructure.

Building 5 at the Dell Technology campus in Round Rock, Texas on Aug. 11, 2025. Dell has cut about 11,000 jobs over the past year while reporting record revenue and investing in its campus.
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Dell logo is seen in this illustration taken August 19, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
Dell reduces workforce by 11,000 in FY26 as it restructure operations

Overview

  • Dell’s latest 10-K shows a roughly 10% headcount drop in the year to Jan. 31, 2026, marking a third consecutive annual decline of about that size.
  • The company recorded $569 million in severance charges for fiscal 2026, down from $693 million in 2025 and $648 million in 2024, with the largest impact in SG&A.
  • Management describes the reductions as part of disciplined cost management using reorganizations, limits on external hiring and facility consolidation.
  • Total headcount has fallen from about 133,000 in fiscal 2023 to roughly 97,000 in fiscal 2026, a decline of more than 27%.
  • Dell highlights growth in its Infrastructure Solutions Group and says AI-optimized server revenue is expected to double by 2027 as it reallocates resources for AI demand.