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-optimized 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.