Dell Technologies eliminated approximately 11,000 jobs during its fiscal year 2026, marking the third consecutive year the company has cut roughly 10% of its workforce. The reductions, disclosed in Dell’s annual 10-K filing published on March 16, brought the company’s total headcount to approximately 97,000 employees as of January 31, 2026.
- Dell’s workforce fell to 97,000 employees as of January 31, 2026, down from 133,000 in February 2023, a 27% reduction over three years.
- AI-optimized server shipments grew 342% year over year in fiscal 2026, with Dell reporting a record $113.5 billion in full-year revenue and a $43 billion AI server backlog.
- The company spent $569 million on severance in fiscal 2026 and expects AI server revenue to nearly double to $50 billion in fiscal 2027.
Dell’s Fiscal 2026 Workforce Reduction Details
The 11,000-person cut follows a pattern that has defined Dell’s restructuring over the past three years. In fiscal 2025, the company eliminated roughly 13,000 roles. In fiscal 2024, another 12,000 positions were cut. The cumulative result: Dell now employs 36,000 fewer people than it did in February 2023, a 27% decline from its peak of 133,000.
Dell did not announce the layoffs in a single wave. Instead, the company used a combination of employee reorganizations, restricted external hiring, and facility consolidations throughout the fiscal year. COO Jeff Clarke noted in recent remarks that Dell is “limiting external hiring” and “reorganizing sales teams” to better handle complex enterprise AI infrastructure deals.
The company incurred $569 million in severance expenses during fiscal 2026, down from $693 million in fiscal 2025 and $648 million in fiscal 2024. The declining severance bill suggests that Dell is relying more heavily on hiring freezes and attrition rather than outright terminations to reduce headcount. In its 10-K filing, Dell stated it “remained committed to disciplined cost management in coordination with our ongoing business modernization initiatives.”
Background on Dell’s AI Pivot
Dell’s job cuts are happening alongside a massive revenue surge in its AI infrastructure business. The company’s Infrastructure Solutions Group, which sells servers and storage systems, posted a 40% revenue increase in fiscal 2026. AI-optimized server shipments grew 342% year over year, and the company reported a $43 billion AI server backlog heading into fiscal 2027.
Full-year revenue hit a record $113.5 billion. Dell’s stock has risen approximately 20% year to date, and shares surged around 30% following the company’s most recent earnings report. The company also authorized $10 billion in share repurchases and increased its dividend by 20%.
What Dell’s Restructuring Signals for the Tech Workforce
Dell’s three-year restructuring illustrates a broader pattern playing out across the technology sector: companies are shedding workers in traditional business lines while investing aggressively in AI. According to data from Layoffs.fyi, more than 60 technology companies have laid off over 38,000 employees in 2026 alone. The pattern extends well beyond Dell, with Meta, Amazon, and other major employers executing similar workforce realignments over the past 18 months.
For entrepreneurs and founders building in the enterprise technology space, Dell’s numbers carry a specific signal. The company expects AI server revenue to nearly double to $50 billion in fiscal 2027, suggesting that enterprise demand for AI infrastructure remains strong even as broader workforce reductions continue. The shift also means that the talent pool of experienced enterprise technology professionals is growing, which could benefit startups competing for the same workers that companies like Dell are letting go.
Dell’s 7.2% operating margin held steady through the restructuring, and the company generated $11.2 billion in cash flow during the fiscal year. That financial performance, combined with a 20% dividend increase and $10 billion share buyback authorization, signals that Wall Street is rewarding the cuts. Competitors like Hewlett Packard Enterprise and Super Micro Computer are also chasing the AI server market, but Dell’s $43 billion backlog gives it a significant lead heading into fiscal 2027.
Frequently Asked Questions
How Many Employees Did Dell Cut in Fiscal 2026?
Dell cut approximately 11,000 employees during fiscal 2026, a 10% reduction that brought its total workforce to roughly 97,000 as of January 31, 2026. The company spent $569 million on severance payments during the fiscal year.
Why Is Dell Laying Off Workers While Revenue Is Growing?
Dell is shifting resources from traditional PC and services roles toward its AI infrastructure business, where server shipments grew 342% year over year. The company expects AI-optimized server revenue to nearly double to $50 billion in fiscal 2027.
How Many Total Jobs Has Dell Eliminated Since 2023?
Dell has eliminated approximately 36,000 positions since February 2023, shrinking its workforce by 27% from 133,000 to 97,000 over three years.
