Dell Reduces Workforce by 10% in Fiscal 2026 Amid AI Business Growth

Dell's workforce decreased by approximately 11,000 employees, or 10%, in fiscal 2026, reducing its total staff to about 97,000 from 108,000 the previous year. The company spent $569 million on severance payments, down from $693 million a year earlier. This reduction reflects cost-cutting and limited external hiring amid broader tech sector layoffs linked to AI disruptions. Despite workforce cuts, Dell anticipates doubling revenue from its AI-optimized servers by fiscal 2027 and recently increased its dividend and share repurchase program.