Tech layoffs: Dell removes around 6,000 employees to cut costs

Dell Technologies has reduced its workforce for the second time in two years, with a recent cut of about 6,000 employees. The company now has nearly 120,000 employees, compared to 126,000 a year earlier.

This reduction is part of Dell's broader cost-cutting initiative, which includes limiting external hiring and employee reorganizations. The company's decision follows a period of sluggish demand for personal computers, contributing to an 11 per cent drop in revenue in the fourth quarter of last year.

Despite the challenges, Dell expects net revenue in its Client Solutions Group to grow this year, although it anticipates rising input costs and ongoing reduction of other businesses' net revenue due to changes in its relationship with VMware. In addition, Dell has introduced a new return-to-office policy, classifying workers as 'hybrid' or 'remote', with remote employees not being considered for promotions or role changes within the company.

End of work-from-home model

Dell was known for its hybrid work culture, but the company has changed its policy for remote workers. A recent report suggested that to get promotions, remote workers must switch to a hybrid work model, which requires them to spend at least three days a week in an office. This change has caused concerns among employees about their career growth and less flexibility.

On the other hand, a study cited by Bloomberg shows that companies offering flexible work-from-home options have seen their revenues grow much faster than those that don’t. The study found that companies fully flexible about where their employees work from saw a 21 per cent increase in sales between 2020 and 2022. In contrast, companies with hybrid or fully onsite work setups saw just a 5 per cent revenue growth during the same period.