Dell to Lay Off 11,000 Employees Throughout 2025, Budget Redirected to AI Development
Business.com, JAKARTA — The American technology giant Dell has reduced its workforce by up to 10% throughout 2025. The company has chosen to redirect its budget and resources towards the development of artificial intelligence (AI) technology.
This streamlining involves the termination of employment for around 11,000 employees globally to align investments with the company’s strategic priorities.
According to the company’s annual Form 10-K report, the number of staff now stands at 97,000 as of 31 January 2026. This figure has shrunk significantly compared to the January 2025 position, which recorded 108,000 employees.
The US-based company has implemented a 10% workforce reduction each year for three consecutive years. Since February 2023, the total reduction has reached 36,000 positions, equivalent to 27% of the initial workforce population.
Management disclosed severance costs of around Rp9.64 trillion during the fiscal 2026 period. This value is lower than the previous fiscal year, which reached around Rp11.75 trillion.
Dell stated that this streamlining is part of disciplined cost management and coordination with business modernisation initiatives. These efforts include employee reorganisation and systematic restrictions on external hiring.
“We are always evaluating our business to remain competitive and ensure we are ready to deliver the best innovation, value, and service to our customers,” said a Dell representative, as reported by Business Insider on Friday (20/3/2026).
The company is now focusing its resources on developing AI-based infrastructure. This new focus is reflected in the surge in revenue for the Infrastructure Solutions Group (ISG) unit, which grew 40% in fiscal 2026.
Dell is also integrating all its operations through a single company platform titled “One Dell Way”. This systems transformation is claimed to be the largest overhaul in the company’s history to enhance overall operational efficiency.
The organisational restructuring strategy has received a positive response from the capital markets, with a 24% increase in share price throughout the year. The company also announced a 20% rise in cash dividends in February.
In addition to the dividend increase, management has allocated an additional Rp169.5 trillion for the share repurchase programme.
This policy is being taken amid expectations that AI server revenue will double in 2027.
Dell’s employee reduction trend reflects similar phenomena undertaken by other global technology giants throughout the year. Amazon has cut 16,000 positions, while Jack Dorsey’s fintech company Block has also slashed half its workforce.
Atlassian software has also dismissed 4,000 employees, citing the role of AI technology in efficiency decisions. Unlike its competitors, Dell has implemented a more subdued but consistently annual streamlining strategy.