Dell to continue layoffs this year on fears of AI server sales hurting margins
Sep.11,2024

Asia Tech Wire (Sep 11) -- Dell said in a regulatory filing on Tuesday that it will continue to cut jobs this year to control costs, as concerns about the prospects for a recovery in demand for personal computers and the profitability of artificial intelligence servers continue to linger.

Dell said that in the fiscal year ending February 2025, restrictions on external hiring, job restructuring and other measures will lead to a continued decline in overall headcount.

The company is aggressively expanding sales of high-performance servers for use in artificial intelligence.

In the most recent quarter, Dell said an increase in the share of AI server sales hurt margins, but profits improved compared to the previous quarter.

In addition, Dell's personal computer business has not recovered as expected after two years of decline.

Dell reported fiscal second-quarter revenue of $12.4 billion at the end of August, down 4% year-over-year and slightly below expectations, with commercial PC revenue essentially flat and consumer PC revenue down 22% year-over-year.

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