Dell reduces workforce as part of broader cost cuts By Reuters

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© Reuters. FILE PHOTO: 3D printed clouds and figures are seen in front of the Dell logo in this photo taken on February 8, 2022. REUTERS/Dado Ruvic/Illustration/File

(Reuters) – Dell Technologies has reduced its workforce as part of a cost-cutting plan that includes reducing hiring and restructuring staff, it said in a filing on Monday.

By Feb. 2, 2024, had about 120,000 employees, down from about 126,000 a year earlier.

The layoffs come as a result of its nearly two-year computer slowdown that led to an 11% drop in revenue in its fourth-quarter earnings posted last month.

Dell (NYSE: ) expects overall revenue in its customer solutions group (CSG) — the home of PCs — to grow for the rest of the year, it said Monday. The division’s revenue fell 12% in the fourth quarter.

Although Dell has warned of challenges in the near term, the company expects the demand to develop and the pricing environment to be competitive in FY 2025.

However, the company expects net income to rise and adds that “there will be continued reductions in net income for our other businesses as a result of changes in our business relationship with VMware (NYSE:)”.

Dell also bought shares tied to its interest in software developers VMware, paving the way for a return to the market in 2018. Chipmaker Broadcom (NASDAQ:) closed a $69 billion acquisition of VMware last year.

Last year, Dell cut 6,650 jobs, as it braced for a recession and reduced demand for personal computers.

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