Dell has slash thousands of employees from their payroll, despite their shares surging over 25% recently, the number is double what the business initially projected.
During the past 12 months the business has slashed costs and given over 13,000 employees a pink slip due in part in a slump in demand for PCs across all of their markets.
Recently shares in Dell Technologies jumped a record 25% propelled by optimistic projections foreseeing an upswing in the demand for information technology equipment to capitalise on artificial intelligence (AI) trends.
They are also set to benefit from a surge in demand for notebooks with new AI capability built in.
The brand, which is exclusive at JB Hi Fi, who last week saw notebooks outperform TVs in some stores, is set to benefit from AI in both the consumer PC and gaming market, as they battle the likes of Lenovo, Acer and HP who are all launching new AI notebooks.
Dell CEO Michael Dell
The latest cuts which affected all regions including in Australia was a steeper reduction in headcount than initially announced by the Company.
Dell had 120,000 employees globally as of Feb. 2, the technology hardware maker said in a filing overnight. That’s down nearly 10% from the previous year. “Throughout Fiscal 2024, we continued to take certain measures to reduce costs,” Dell said in the filing.
“Despite these difficult decisions, we continue focused efforts to empower our employees and attract, develop, and retain talent.”
The Company admits that weak sales of personal computers in both the B2b and consumer markets prompted an announcement at the start of 2023, when Dell executives said they would cut about 6,650 roles, now it’s been revealed that twice as many were eliminated over the course of fiscal 2024.
A Dell spokesperson said the disclosure reflects “ongoing commitment to assessing our business to ensure we’re competitive and set up to deliver.”
The surge in share value after a global spike in interest for its high-powered servers needed to run AI workloads.
Its shares are now near a record high after reporting customer interest in “AI-optimized servers.”
