AI servers put pressure on profit margins, Dell (DELL.US) will continue to wield the axe

Dell Technologies Inc. will continue to cut jobs this year to try to control costs amid concerns that the recovery in PC demand is weaker than expected, and that sales of servers optimized for artificial intelligence are less profitable than other products, the company said. The restrictions on external hiring, job restructurings and other actions will result in "a continued reduction in total headcount" through the fiscal year ending in February 2025, Dell said.