Dell to Cut Jobs in China Amidst US Retreat from World's No. 2 Economy

Dell Technologies is cutting jobs in China, affecting employees in the EMC storage unit and Client Solutions Group in Shanghai and Xiamen. This is the third round of layoffs in recent months and follows other multinational tech giants such as Micron Technology and IBM, which have also shed jobs in China due to the intensifying Sino-US rivalry. The scale of Dell's latest job cuts is unknown.

Dell Technologies has announced another round of layoffs in China, affecting employees in the EMC storage unit and Client Solutions Group (CSG) in Shanghai and Xiamen. This is the third round of layoffs in recent months for the company, following similar actions by other multinational tech giants such as Micron Technology and IBM, who have also scaled back their operations in China due to intensifying Sino-US rivalry.

The layoffs come amidst broader global workforce reductions by Dell. According to its financial reports, Dell’s total headcount dropped to around 108,000 as of January 31, down from approximately 120,000 a year earlier Dell Cuts Staff In China Amidst Tensions^[1]. The company cited cost-cutting measures, including limiting external hiring and reorganizing staff, as reasons for the reduction in headcount.

Dell’s CSG saw a 9% decline in operating income over the six months ending August 1, even as the company’s overall operating income grew by 25% to nearly $3 billion during the same period After IBM, Microsoft, and Micron, now Dell to lay off an ...^[2]. This decline in CSG operating income may have contributed to the recent layoffs.

The latest layoffs are part of a broader trend among US tech firms to reduce their presence in China. In August, Micron Technology began another round of layoffs, cutting hundreds of jobs in China due to the challenging financial performance of its mobile NAND products Computer maker Dell to cut jobs in China in latest US retreat from world's No 2 economy^[3]. In March, IBM shut down IBM (China) Investment Company after laying off more than 1,000 staff at its IBM China Development Lab and China Systems Lab last year Dell reportedly cutting staff from China operations^[4]. Earlier this year, Microsoft closed its IoT & AI Insider Lab in Shanghai after pulling hundreds of staff out of the country in May 2024 Dell reportedly cutting staff from China operations^[4].

The scale of Dell's latest job cuts is unknown. Affected employees have until October 10 to apply for open internal positions. The company has not publicly disclosed the total number of people affected in this round of layoffs.

References:
Dell Cuts Staff In China Amidst Tensions^[1] https://www.silicon.co.uk/e-management/lay-off/dell-china-cuts-626583
After IBM, Microsoft, and Micron, now Dell to lay off an ...^[2] https://m.economictimes.com/news/international/us/dell-china-layoffs-2025-after-ibm-microsoft-and-micron-job-cuts-in-china-amid-us-china-trade-war-latest-news/articleshow/123769904.cms
Computer maker Dell to cut jobs in China in latest US retreat from world's No 2 economy^[3] https://sg.finance.yahoo.com/news/computer-maker-dell-cut-jobs-093000516.html
Dell reportedly cutting staff from China operations^[4] https://www.tomshardware.com/tech-industry/dell-reportedly-cutting-staff-from-china-operations-affected-employees-have-until-october-10-to-apply-for-internal-transfer