Dell Technologies saw a significant reduction in its workforce, with its headcount falling by 10 percent in fiscal 2025.
According to annual report of Dell Technologies, the total number of employees stood at approximately 108,000 as of January 31, down from about 120,000 a year earlier.
The job cuts at Dell Technologies were part of a broader cost-reduction strategy that included limiting external hiring and employee reorganizations. This marks a continued trend, as Dell had already reported a 5 percent decline in its workforce in fiscal 2024, Reuters news report said.
The job cuts come amid increasing financial pressures, particularly in the AI server market. In February, Dell projected a decline in its adjusted gross margin rate for fiscal 2026, citing rising costs associated with manufacturing AI servers in an intensely competitive landscape. The company’s focus on AI infrastructure has led to higher investment requirements, impacting profitability and necessitating further cost-control measures.
Dell Technologies reported fiscal 2025 full-year revenue of $95.6 billion, an 8 percent increase year over year. Operating income reached $6.2 billion, up 15 percent, while non-GAAP operating income grew 8 percent to $8.5 billion. The company achieved record diluted earnings per share (EPS) of $6.38, a 39 percent increase.
The Infrastructure Solutions Group (ISG) saw strong growth, with full-year revenue of $43.6 billion, up 29 percent, and operating income of $5.6 billion, up 30 percent. Fourth-quarter revenue was $11.4 billion, a 22 percent increase, driven by AI and traditional server demand, with $6.6 billion from servers and networking (up 37 percent) and $4.7 billion from storage (up 5 percent). Fourth-quarter operating income hit a record $2.1 billion, up 44 percent.
The Client Solutions Group (CSG) faced challenges, with full-year revenue at $48.4 billion, a 1 percent decline, and operating income of $3.0 billion, down 20 percent. Fourth-quarter revenue increased 1 percent to $11.9 billion, with commercial client revenue rising 5 percent to $10.0 billion, while consumer revenue fell 12 percent to $1.9 billion. Fourth-quarter operating income dropped 19 percent to $631 million.
For the first quarter of fiscal 2026, Dell expects revenue between $22.5 billion and $23.5 billion, reflecting a 3 percent year-over-year increase at the midpoint of $23.0 billion. Dell said Full-year FY26 revenue expected between $101.0 billion and $105.0 billion, up 8 percent year over year at the midpoint of $103.0 billion.
Baburajan Kizhakedath
