Dell Stock in Focus After PC Maker Discloses Job Cuts—Key Price Levels to Watch

Dell Technologies ( DELL ) shares are in focus Tuesday after the PC and laptop maker revealed in a regulatory filing late Monday that it has trimmed its workforce as part of a broader cost cutting initiative that also includes limiting external hiring and reorganizing staff to meet client priorities.

Dell had approximately 120,000 employees as of Feb. 2, according to the filing, down from around 126,000 at the same time in 2023, per a Reuters report, indicating a reduction of about 6,000 jobs, or 5% of its workforce, over the past year.

While booming demand for artificial intelligence (AI) servers provides a tailwind for the company, a two-year slump in the personal computer market has presented challenges. In its latest quarter, sales in Dell’s PC business contracted 12% from the prior year and 5% on a sequential basis.

However, the benefits of Dell’s cost-cutting measures many be starting to pay dividends, with the company forecasting net revenue growth this year in its PC-focused client solutions unit. It also expects a more competitive pricing and demand environment throughout fiscal 2025.

Still, Dell expects its input costs to increase, and cautioned that there will be revenue declines in its other businesses due to changes in its commercial relationship with former subsidiary VMware, the cloud software company recently acquired by chipmaker Broadcom ( AVGO ).

The staffing cuts come at a time when other tech bellwether companies, including Alphabet ( GOOGL ), Meta ( META ), Microsoft ( MSFT ), and Amazon ( AMZN ) have reduced headcounts to streamline business efficiencies as the AI enterprise race intensifies and firms readjust personnel levels after a pandemic-era hiring spree. More broadly, technology companies have slashed over 50,000 jobs so far this year, according to layoffs.fyi.

Dell shares traded within a rising wedge pattern throughout last year and early this year before staging a dramatic volume -backed breakout on March 1. Key levels to watch on the chart include the pattern’s top trendline, which may provide support around $100 during retracements , and the stock’s all-time high (ATH) at $131.06, an area during rallies where investors may decide to lock in profits.

Dell shares were up 1.3% at $114.50 in pre-market trading at around 6:45 a.m. ET Tuesday.

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