Dell Technologies has reduced its global workforce for the third consecutive year, trimming around 11,000 roles as part of ongoing cost-cutting and restructuring efforts amid weak PC demand and a broader shift toward AI.

In its latest annual filing, the US tech giant reported headcount of approximately 97,000 employees as of late January, down from about 108,000 a year earlier.

The decline represents a roughly 10% reduction year-on-year and continues a steady downsizing trend from around 133,000 staff in 2023.

Dell said the cuts were driven by “disciplined cost management” and business modernisation initiatives, including team restructures, hiring limits and site consolidation.

Unlike some Silicon Valley giants, Dell has taken a more gradual approach, relying in part on attrition and reduced hiring rather than large, one-off layoffs.

The latest reductions come as Dell ramps up investment in AI infrastructure and high-performance computing. The company is seeing strong demand for AI-optimised servers and expects revenue from that segment to grow significantly in coming years.

At the same time, Dell is pushing AI capabilities into enterprise hardware, unveiling new Pro Precision workstations and mobile systems designed to handle on-device AI workloads such as model training and local inferencing.

The strategy reflects a broader industry shift toward running AI closer to where data is generated, rather than relying solely on cloud infrastructure.

Financially, the restructuring continues to carry a cost. Dell reported US$569 million in severance and related expenses in fiscal 2026, down from US$693 million the previous year.

Across the tech sector, industry trackers estimate tens of thousands of tech roles have already been cut in 2026 alone as companies invest more in AI. Dell’s move follows other companies including Meta, Amazon, Microsoft and eBay.

Despite the job reductions, Dell’s business performance remains solid, buoyed by AI-driven growth and rising demand for infrastructure.