Dell shed 25,000 employees over two years, AI and RTO among key factors

As outlined in a recent 10-K filing, computer maker Dell has been shring in terms of staff volume, with 25,000 of its employees no longer on the payroll as of January 2025.

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As reported by Business Insider, the company said that it had 133,000 staff as of February 2023. According to the recent filing, the figure currently stands at 108,000 global employees as of January 31, 2025. This represents a total reduction of 25,000, marking a 10% shrinkage every year. Altogether, the company's workforce has reduced by 19% over the two-year period.

In August 2024, Dell significantly restructured its sales divisions, laying off over 20,000 workers. The laid-off staff were told the restructure was to prepare for "the world of AI". The company also began issuing return-to-office mandates last year, eventually ordering all staff within 90 minutes of Dell offices to return full-time as of January 2025.

Dell's RTO policy has been a sore point for employees, with 2024 reports suggesting that 50% of Dell's full-time US-based employees would prefer to stay remote. Most staffers would be willing to sacrifice promotions to do so, and several staff reported that the policies prompted them to pursue other work.

Although layoffs and RTO mandates remain key factors, Dell's annual revenue grew by 8% in its 2024 financial year. However, company shares have dropped by 15% in 2025. Bloomberg's Billionaires Index also reported that Dell CEO Michael Dell has taken a $16.6 billion hit to his net worth in 2025, the second most significant decrease after Tesla CEO Elon Musk.