Dell workforce declines by about 11,000 employees in fiscal 2026

Dell’s global workforce declined by about 11,000 employees in fiscal 2026, a roughly 10% reduction, as the technology company tightened hiring and continued restructuring while ramping up investments in artificial intelligence infrastructure.

The company said in its latest annual report that it employed around 97,000 people as of January 31, 2026, compared with approximately 108,000 a year earlier, according to Reuters. The report also showed that Dell’s workforce had already fallen by about 10% in fiscal 2025, indicating that the reductions have been unfolding over multiple years rather than through a single large layoff announcement.

Severance costs also declined, suggesting that the scale of restructuring may be stabilising. Dell reported US$569 million in severance payments in fiscal 2026, down from US$693 million in the previous fiscal year, the annual filing showed.

The headcount decline comes as major technology companies reassess workforce structures amid rising spending on artificial intelligence. According to Reuters, more than 60 technology companies have cut over 38,000 jobs so far this year, reflecting broader concerns across Silicon Valley about automation and the productivity impact of AI tools.

For Dell, the restructuring coincides with a strategic pivot towards AI-driven infrastructure. The company has increasingly positioned its AI-optimised servers as a central growth engine, responding to surging demand for computing capacity required to train and deploy large AI models.

Last month, Dell said it expects revenue from its AI-optimised server business to double by fiscal year 2027, underscoring how critical the segment has become to its long-term strategy.

At the same time, the company has continued to reward shareholders as it reshapes its operations. In February, Dell announced a 20% increase in its cash dividend and authorised an additional US$10 billion share repurchase programme, according to Reuters.

Dell’s shares have also performed strongly this year, rising more than 24% year-to-date, reflecting investor optimism about the company’s role in supplying infrastructure for the AI boom.

The workforce changes illustrate a broader pattern across the technology sector. As companies invest heavily in AI systems, many are limiting external hiring and reorganising teams, shifting resources away from legacy operations towards high-growth computing platforms.

Employees across Silicon Valley have become increasingly concerned about how AI could reshape jobs. The rapid development of generative AI and automation tools has prompted executives to reconsider how large teams need to be, particularly in engineering, operations and support functions.

Dell has not framed the workforce decline as a single layoff programme, but the cumulative reductions signal a significant organisational shift. The company has also been pursuing operational simplification initiatives internally as it prepares for an AI-driven computing landscape.

Looking ahead, Dell’s challenge will be balancing cost discipline, workforce stability and the capital intensity of AI infrastructure. As demand for AI servers grows, the company appears determined to focus resources on its most profitable segments while keeping its organisational structure lean.

For the broader technology workforce, Dell’s latest headcount figures offer another indication that the AI era may reshape not only products and platforms but also the scale and structure of corporate workforces.