Dell reduces workforce in March 2024 as cost-cutting measures impact thousands

Dell Technologies has announced a significant reduction in its workforce, cutting as many as 6,000 employees, as reported by Reuters. The company stated in a recent filing that these layoffs are part of a broader strategy to reduce operational costs. This move reflects Dell’s efforts to adapt its operational and financial strategies amid evolving market demands and economic conditions.

Key Points of Dell’s Workforce Reduction

• Reduction Details: As part of its cost-cutting initiative, Dell Technologies has limited external hiring and reorganized employees, leading to a reduction in its workforce. The company reported nearly 120,000 employees as of February 2, 2024, down from about 126,000 a year earlier.
• Financial Performance: The decision comes in the wake of a nearly two-year period of reduced demand for personal computers, contributing to an 11% decline in revenue in the fourth quarter of the previous year. Dell’s client solutions group, which includes its PC business, saw a 12% fall in revenue in the same quarter. Despite these challenges, Dell projects growth in this segment throughout the year.
• Future Expectations: Dell has expressed caution regarding near-term challenges but remains optimistic about an improvement in demand and a more competitive pricing environment in 2025. The company anticipates rising input costs and potential revenue reductions in other business segments due to changes in its commercial relationship with VMware.
• Return to Office Mandate: In February, Dell told its hybrid workers to start working in the company’s physical workplaces at least three days a week, and that failure to do so would limit opportunities for promotion.
• Previous Job Cuts: This current round of workforce reduction at Dell follows a significant layoff last year, where the company eliminated 6,650 positions. Earlier this year, reports emerged of substantial global layoffs within Dell, particularly impacting the marketing and sales departments.

Impact on Canadian staff

It remains unclear how many Canadian employees at Dell have been impacted by these layoffs and cost cutting measures.

According to the company’s LinkedIn page, it has over 10,000 workers in the country.

Next steps for Dell employees

If you’ve been affected by the layoffs at Dell, understanding your legal rights is crucial.

Non-unionized employees in Canada’s technology sector are entitled to severance pay based on a variety of factors, including their role, tenure, age, and ability to find similar work.

Here’s what you need to know:

• Compensation: Severance packages, which can be as much as 24 months’ pay, may include salary, bonuses, commissions, and other forms of compensation. Use our firm’s free Severance Pay Calculator to better understand your entitlements.
• Deadlines: You generally have up to two years from the date of your termination to review and negotiate severance offers.
• Action steps: Consult an employment lawyer at Samfiru Tumarkin LLP to ensure your severance package is fair and aligns with Canadian employment laws.

Many companies cutting jobs

Reports of a workforce reduction at Dell come amid an ongoing stream of tech layoffs in 2024.

Big names, including IBM, Electronic Arts, Rivian, Cisco, Mozilla, Instacart, Grammarly,  Amazon, DocuSign, Snap, Zoom, Okta, PayPal, Salesforce, and eBay, have pulled out the axe as they continue to navigate challenging economic conditions.

SEE ALSO
• Musk, X facing $128M severance lawsuit from former Twitter execs
• Boundless Learning laying off 15% across company: Reports
• Where are layoffs happening in Canada?

Lost your job? Contact us

If you’re affected by the latest round of layoffs at Dell, the experienced employment law team at Samfiru Tumarkin LLP can help.

Our lawyers in Ontario, Alberta, and British Columbia have helped tens of thousands of non-unionized individuals resolve their workplace issues.

Call us today at 1-855-821-5900 or request a consultation online.