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Dell continues to quietly shrink its workforce

Mass layoffs are all the rage in the tech industry.

This year alone, Amazon has cut 16,000 jobs, Jack Dorsey’s fintech firm Block has slashed half its workforce, and the software company Atlassian has laid off 4,000 employees — about 10% of staff. Next up, Meta is reportedly preparing cuts of 20% or more.

The PC giant Dell is taking a different approach, quietly but systematically shrinking its head count.

In its latest 10-K filing, published on Monday, Dell said that it had roughly 97,000 employees as of January 31, 2026. The number marks an 11,000 reduction in the company’s workforce in the last year.

The number includes both attrition and layoffs, but a clear pattern is emerging — it’s the third year in a row that Dell’s workforce has shrunk by 10%.

The company now has 36,000 fewer employees than in February 2023 — a 27% decline over three years.

The company said that throughout its 2026 fiscal year, it had reduced costs through measures including “employee reorganizations, limitation of external hiring, and other actions to align our investments with our announced strategic and customer priorities.”

Dell did not immediately respond to a request for comment.

Job cuts across tech are being linked to AI

This year’s headline-grabbing tech layoff announcements share a common thread: companies are tying job cuts to AI transformations.

Memos from both Block’s and Atlassian’s CEOs highlighted profound shifts in how they see technology reshaping work and, therefore, how many workers they’ll need in the years to come.

Dell may be less overt about announcing employee cuts, but, like others in the industry, it is undergoing a major modernization push as it prepares for an AI-driven future.

In its 10k filing, Dell said it had been committed to “cost management in coordination with our ongoing business modernization initiatives.”

In its latest annual results, revenue in Dell’s Infrastructure Solutions Group (ISG), which sells servers and storage infrastructure, rose 40% in its 2026 fiscal year, and the company said it expected AI-optimized server revenue to double in 2027.

Internally, Dell is preparing to roll out standardized processes across its operations and launch a single enterprise platform, an initiative it has called One Dell Way. In a January memo, Dell told staff the systems overhaul would be the “biggest transformation in company history,” Business Insider exclusively reported.

In line with other tech industry trends, Dell has also been tightening workplace policies for its remaining 97,000 employees, first with a 5-day RTO mandate for workers living near offices and, most recently, in February, introducing a tougher compensation system for sales staff.

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Spirit Airlines plans to shrink its fleet to fewer than 80 jets. It once had over 200.

US budget carrier Spirit Airlines says it is downsizing its fleet by almost two-thirds.

The Florida-headquartered air carrier, known for its no-frills flying and ultra-low-cost fares, filed for Chapter 11 bankruptcy protection in August — the second time in less than a year.

While it once operated more than 200 aircraft, Spirit now intends to run fewer than 80 by the third quarter of 2026. It anticipates adding aircraft between 2027 and 2030.

In a news release, Spirit said it will continue to align its network with consumer demand and focus on its strongest routes and markets, including Fort Lauderdale, Orlando, Detroit, and New York City. It also plans to expand its first class and premium economy options.

The company said it expected its debt and lease obligations to be reduced from $7.4 billion pre-filing to about $2 billion post-emergence.

“While we still have work to do with other important stakeholders, today’s agreements and filings are very material steps forward toward emergence,” Spirit’s president and CEO, Dave Davis, said in a press release. “I also want to thank our team members and guests for their support as we work together to build a stronger Spirit.”

Mounting financial losses

Spirit first sought bankruptcy protection in November 2024, following years of mounting financial losses and the collapse of a proposed $3.8 billion merger deal with JetBlue.

The budget airline, easily recognizable by its bright yellow planes, reported in its initial voluntary bankruptcy petition that as of September that year, it had $9.49 billion in total assets and $8.99 billion in total debts.

Spirit emerged from bankruptcy in March last year after the airline said it slashed $800 million in debt and received a $350 million equity infusion from existing investors “to support Spirit’s future initiatives,” but the rebound was short-lived.

In a Securities and Exchange Commission quarterly report filed last August, the airline’s parent company, Spirit Aviation Holdings, warned it may not be able to stay in business another year. Later that month, the airline filed for bankruptcy protection for a second time and has been cutting costs ever since. At the time of its filing, Spirit listed debt of $8 billion and assets of $8.56 billion.




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