Dell Layoffs: 2024 workforce reduction, cost cuts hit thousands of employees

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.

Termination agreements for staff at Dell Canada

In Canada, non-unionized employees at Dell are owed full severance pay when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.

This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.

People working “on contract” or as a contractor may also be owed severance pay — given that many employees in Canada are often misclassified as independent contractors.

Severance can be as much as 24 months’ pay, depending on a number of factors.

WATCH: Employment lawyer Lior Samfiru explains what rights employees have if they are being fired or let go on an episode of the Employment Law Show.

Before accepting a severance offer, double-check the amount using our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their entitlements.

In addition to your salary, make sure to factor in any other elements of your compensation (i.e. bonuses, commission, etc.).

If your employer’s offer falls short of what our Severance Pay Calculator says you are owed, it’s very likely that you have been wrongfully dismissed and should contact an experienced employment lawyer at Samfiru Tumarkin LLP.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue proper severance pay.

LEARN MORE
• Severance pay for banking sector employees
• Rights to severance for federally regulated workers
• Severance packages for provincially regulated employees

Major layoffs continue

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? Talk to an employment lawyer

If you have been fired or let go for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have successfully represented tens of thousands of non-unionized individuals.

In addition to severance package negotiations, we can assist you on a broad range of employment matters, including:

If you are a non-unionized employee who needs help with a workplace issue, contact us or call 1-855-821-5900 to get the advice you need and the compensation you deserve.