In its latest annual report, the computer and AI infrastructure manufacturer revealed that its total employee count declined by about 10% in fiscal 2026, representing roughly 11,000 job cuts. The company said it had approximately 97,000 employees as of January 31, compared with about 108,000 workers a year earlier.
The reduction reflects a broader effort to control operating costs while limiting external hiring as the company pivots toward high-growth artificial intelligence infrastructure.
Severance Costs Decline as Layoffs Continue
According to the report, Dell spent $569 million on severance payments during fiscal 2026, down from $693 million the previous year. The decline suggests the company may be slowing the pace of layoffs compared with earlier restructuring efforts, even as its overall workforce continues to shrink.
Dell’s workforce had already fallen by about 10% in fiscal 2025, meaning the company has trimmed tens of thousands of jobs over the past two years as it restructures operations.
Growing Anxiety Across the Tech Industry
The layoffs come amid rising concern among technology workers about the potential impact of artificial intelligence on employment.
Industry data compiled by Layoffs.fyi indicates that more than 60 technology companies have eliminated over 38,000 jobs so far this year, highlighting a wave of restructuring across Silicon Valley and the broader tech sector.
Companies are increasingly redirecting resources toward AI development, automation, and data infrastructure — areas expected to drive the next phase of industry growth.
Dell Betting on AI Infrastructure
Despite the workforce reductions, Dell remains optimistic about its long-term growth prospects, particularly in the market for AI-optimized computing systems.
The company recently said it expects revenue from its AI-focused server business to double by fiscal 2027, reflecting strong demand from companies building large-scale artificial intelligence platforms.
Investors appear to be responding positively to that strategy. Shares of Dell have risen more than 24% so far this year, supported by growing enthusiasm around AI infrastructure providers.
Shareholder Returns Increase
Alongside its growth outlook, Dell has also taken steps to reward shareholders. In February, the company announced a 20% increase in its cash dividend and authorised an additional $10 billion for its share repurchase programme.
The move underscores the company’s confidence in its financial position even as it continues restructuring its workforce.
Across the technology sector, the shift toward artificial intelligence is prompting companies to rethink not only their product strategies but also the size and structure of their workforces — a trend that is likely to continue as the industry evolves.