Dell's Expanded Cost-saving Objective Leads To Layoffs; Performance In FY25 Expected To Improve

Tech major Dell has laid off its employees as a part of its expenditure cut which includes reorganising its working force and limiting external hiring, according to a Reuters report on Monday.

These layoffs are attributed to the company’s sluggish sales, which have not improved for two years and the 11 per cent revenue drop in the fourth quarter last month, which further exacerbated the company’s decision to hand the pink slip to its employees.

The report highlighted as of 2 February 2024, Dell has nearly 1,20,000 employees, down from about 1,26,000 in the previous year.

Despite the sluggish laptop demands among consumers, Dell has been optimistic about its performance in FY 2025 and is gearing up to work on a new business strategy, focused on improving the product demand and developing a pricing suitable for the competitive market.

Additionally, the company is expecting its net revenue in client solutions group (CSG) - home to PCs - to grow for the entire year. Meanwhile, its segment's revenue fell 12 per cent in the fourth quarter.

Recently, the tech major was also in the news for implementing stringent return-to-office (RTO) policies, which will be in stark contrast to its hybrid work culture for over a decade, forcing employees to work from the office or forego the opportunity for promotion.