Dell Layoffs 2026: What’s Happening & Severance Rights in Canada

Dell’s workforce has shrunk by approximately 10% for a third year in a row. (Business Insider)

The tech giant revealed in its latest 10-K filing that it had around 97,000 employees as of Jan. 31, 2026 — marking a drop of 11,000 workers since 2025.

Dell has been focused on cutting costs through “employee reorganizations, limitation of external hiring, and other actions to align our investments with our announced strategic and customer priorities.”

This page explains:

• What’s happening with Dell layoffs
• Whether a Dell layoff is permanent
• How much severance Dell employees in Canada may be owed
• What to do before signing a severance offer

Dell Layoffs: A Timeline of Recent Job Cuts

Dell has experienced several restructuring cycles in recent years, with job cuts that have affected teams linked to Canadian operations.

• Aug. 2025: Dell has reportedly trimmed its sales division and “new logo” acquisitions team.
• Aug. 2024: Employees claim Dell has cut jobs, citing a move to create a new AI-focused sales unit.
• March 2024: Dell has reportedly axed as many as 6,000 positions.
• Jan. 2024: Dell has reportedly eliminated marketing and sales roles.
• Aug. 2023: Dell is slashing sales staff as it adopts a new partner-driven go-to market model.
• Feb. 2023: Dell is eliminating more than 6,000 jobs as it navigates challenging economic conditions.
• Sept. 2020: Dell is scaling back its staffing levels during the COVID-19 pandemic.
• July 2020: Dell is cutting jobs as it braces for the economic uncertainties of the COVID-19 pandemic.
• Jan. 2019: VMware Inc., a subsidiary of Dell, has trimmed its headcount following an internal review.

Is a Dell Layoff Temporary or Permanent?

For non-unionized employees at Dell, a layoff is almost always treated as a termination without cause, even if the following language is used:

• “Restructuring”
• “Reorganization”
• “Transformation”
• “Temporary layoff”

Unless your employment contract explicitly allows for Dell to temporarily lay you off, the company can’t place you on indefinite layoff without terminating your employment — meaning they must provide full severance pay.

Severance Pay for Dell Employees

In Canada, non-unionized employees, including those at Dell, are often owed far more severance pay than what’s outlined in their initial offer.

Severance is based on common law entitlements, not just minimum standards. Factors include:

• Age
• Length of service
• Position and seniority
• Availability of comparable jobs

In many cases, Dell employees in Canada can be owed up to 24 months of compensation.

Severance may include:

• Base salary
• Continued benefits
• Bonus and incentive compensation
• Stock, equity, or RRSP contributions (where applicable)
• Vacation pay
• Other earned compensation

First offers often:

• Cover only minimum entitlements
• Exclude bonuses or incentives
• Impose short signing deadlines
• Undervalue long-service or senior employees

Severance Offers: Common Problems

Canadian employees affected by layoffs frequently report issues such as:

• Severance offers far below legal entitlements
• Missing or unclear compensation breakdowns
• Benefits cut off too early
• Bonuses excluded without justification
• “Temporary layoff” language used improperly
• Pressure to sign within 24–48 hours

Wrongful Dismissal and Dell Layoffs

A wrongful dismissal occurs when major employers, including Dell, fail to provide full severance required under common law.

You may have a claim if:

• Your severance offer is too low
• A termination clause isn’t enforceable
• You were pressured to accept your severance offer on the spot
• Bonuses or benefits were excluded from your severance package
• You were terminated while on medical, parental, or disability leave
• Dell labelled your termination a “temporary layoff” without contractual authority

Large-scale layoffs at Dell don’t reduce their legal obligations in Canada.

Laid Off at Dell? Next Steps

If you’ve been laid off at Dell:

1. Don’t sign your severance offer immediately
2. Gather your employment contract, bonus plans, and benefits information
3. Use the Severance Pay Calculator to double-check your entitlements
4. Keep records of your role, compensation, and length of service
5. Speak with an employment lawyer before agreeing to anything

Dell Layoffs: Frequently Asked Questions

How much severance can Dell employees receive?

Up to 24 months — depending on age, service, and position.

Are Dell layoffs permanent?

For non-unionized employees, yes. A layoff is typically a termination.

Does Dell have to include bonuses in severance?

Often yes — especially if bonuses were a regular part of compensation.

Can Dell terminate employees on leave?

This can raise serious wrongful dismissal and human rights issues.

Can employment lawyers represent unionized Dell staff?

No. Unionized employees at Dell must go through their union.

Lost Your Job at Dell? Get Help Now

If Dell has laid you off, or offered a severance/buyout package, don’t do anything before seeking legal advice.

Samfiru Tumarkin LLP, one of Canada’s most reviewed employment law firms, has helped more than 50,000 Canadians secure the compensation they’re legally entitled to.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and SHOULD NOT be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.