Another big firm has carried out huge layoffs at a time when the IT sector has already let go of almost 50,000 workers this year, including those who were let go by Google, Microsoft, and Amazon. Dell Technologies said in a filing that it had slashed staff as part of a broader effort to decrease costs, which also included limiting recruiting from outside the company and reorganizing existing employees. As of February 2, 2024, it employed about 120,000 workers, down from about 126,000 a year earlier, suggesting 6,000 layoffs during the previous year.

Due in part to the poor demand for its personal computers for almost two years, the company's fourth-quarter profits saw an 11% fall in sales, which prompted the announcement of layoffs this month.

In the midst of the 6,000 layoffs, Dell said on Monday that it expects net revenue growth in its PC-housing client solutions division (CSG) for the entire year, according to a Reuters story. The segment's revenue decreased by 12% in the fourth quarter.

Despite cautioning about possible challenges in the near future, Dell expects increased demand and a more competitive price landscape in FY 2025. The company did acknowledge that it expects input prices to rise and that there would likely be a "continuous reduction of our other businesses' net revenue as a result of the change in our commercial relationship with VMware".

To be ready for its market comeback in 2018, Dell bought back shares associated with its ownership of VMware, a software business. Chipmaker Broadcom finalized the $69 billion acquisition of VMware last year. Last year, Dell fired off 6,650 workers as the business braced for a potential recession and the downturn in the personal computer industry.