Dell workforce drops 10% in fiscal 2026, filing shows

March 16 (Reuters) - Dell's ‌total workforce ​declined ​by about 10%, or 11,000 employees, in fiscal 2026, it said on ‌Monday, a sign that the AI server maker ⁠is limiting external hiring to reduce costs.

The company spent $569 ‌million in severance payments ‌in this period, compared with $693 million a year ago, its annual report showed.

Dell had about ​97,000 employees as of January 31, down from about 108,000 employees a year ago. ⁠Its workforce had declined by about 10% in fiscal 2025.

Silicon ​Valley employees have grown increasingly concerned about AI disruption in recent months as 60 ​tech companies have laid ‌off more than 38,000 employees this year, according to Layoffs.fyi, a website ⁠tracking sector-wide job cuts.

Reuters reported on Friday that social media giant Meta was planning a sweeping layoff that ⁠could affect 20% or more of its workforce.

Dell, whose shares ​have risen over 24% so far this year, said last month that it expects revenue from its key ‌AI-optimized servers business to double in fiscal year 2027.

In February, it announced ‌a 20% hike in its cash dividend ⁠and an additional $10 billion ‌for its share ​repurchase program.

(Reporting by Jaspreet Singh and Utkarsh Shetti in Bengaluru; Editing by Arun ‌Koyyur)

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