Business.com, JAKARTA \u2014 The American technology giant Dell has\nreduced its workforce by up to 10% throughout 2025. The company has\nchosen to redirect its budget and resources towards the development of\nartificial intelligence (AI) technology.<\/p>\n
This streamlining involves the termination of employment for around\n11,000 employees globally to align investments with the company\u2019s\nstrategic priorities.<\/p>\n
According to the company\u2019s annual Form 10-K report, the number of\nstaff now stands at 97,000 as of 31 January 2026. This figure has shrunk\nsignificantly compared to the January 2025 position, which recorded\n108,000 employees.<\/p>\n
The US-based company has implemented a 10% workforce reduction each\nyear for three consecutive years. Since February 2023, the total\nreduction has reached 36,000 positions, equivalent to 27% of the initial\nworkforce population.<\/p>\n
Management disclosed severance costs of around Rp9.64 trillion during\nthe fiscal 2026 period. This value is lower than the previous fiscal\nyear, which reached around Rp11.75 trillion.<\/p>\n
Dell stated that this streamlining is part of disciplined cost\nmanagement and coordination with business modernisation initiatives.\nThese efforts include employee reorganisation and systematic\nrestrictions on external hiring.<\/p>\n
\u201cWe are always evaluating our business to remain competitive and\nensure we are ready to deliver the best innovation, value, and service\nto our customers,\u201d said a Dell representative, as reported by Business\nInsider on Friday (20\/3\/2026).<\/p>\n
The company is now focusing its resources on developing AI-based\ninfrastructure. This new focus is reflected in the surge in revenue for\nthe Infrastructure Solutions Group (ISG) unit, which grew 40% in fiscal\n2026.<\/p>\n
Dell is also integrating all its operations through a single company\nplatform titled \u201cOne Dell Way\u201d. This systems transformation is claimed\nto be the largest overhaul in the company\u2019s history to enhance overall\noperational efficiency.<\/p>\n
The organisational restructuring strategy has received a positive\nresponse from the capital markets, with a 24% increase in share price\nthroughout the year. The company also announced a 20% rise in cash\ndividends in February.<\/p>\n
In addition to the dividend increase, management has allocated an\nadditional Rp169.5 trillion for the share repurchase programme.<\/p>\n
This policy is being taken amid expectations that AI server revenue\nwill double in 2027.<\/p>\n
Dell\u2019s employee reduction trend reflects similar phenomena undertaken\nby other global technology giants throughout the year. Amazon has cut\n16,000 positions, while Jack Dorsey\u2019s fintech company Block has also\nslashed half its workforce.<\/p>\n
Atlassian software has also dismissed 4,000 employees, citing the\nrole of AI technology in efficiency decisions. Unlike its competitors,\nDell has implemented a more subdued but consistently annual streamlining\nstrategy.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/dell-to-lay-off-11-000-employees-throughout-2025-budget-redirected-to-ai-development-1774003886", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }