Dell sales slump by £500m as it sheds hundreds of jobs
Sales at the UK arm of technology giant Dell were cut by almost £500m during its latest financial year as it shed hundreds of jobs, it has been revealed.
The London-headquartered division of the US group has reported a revenue of £3bn for the 12 months to 2 February, 2024, down from £3.5bn.
Newly-filed accounts with Companies House have also revealed that its headcount was cut from 2,213 to 1,923 in the year.
However, despite the fall in sales, Dell’s pre-tax profit increased in the 12 months from £76.6m to £85.5m.
Dell said its decline in sales was “primarily driven by declines in Client Solutions Group revenue and, to a lesser extent, Infrastructure Solutions Group revenue, which reflected the prolonged impact of global macroeconomic conditions on demand”.
The business generated a revenue of £2.5bn from its hardware, down from £2.9bn, while its software sales also declined from £473,464 to £369,135.
A statement signed off by the board said: “The directors are satisfied with the growth in business during the financial year and they expect that the present level of activity will be sustained for the foreseeable future.”
The wider Dell Technologies group, which is listed on the New York Stock Exchange, reported a revenue of $88.4bn for its latest financial year, a 14 per cent fall compared to its prior 12 months.
Dell’s revenue from its products declined by 19 per cent to $64.3bn and by four per cent to $24bn for its services.
Its operating income was also cut by 10 per cent in the year to $5.2bn.
At the time, chief financial officer Yvonne McGill said: “We’re optimistic about FY25 and are increasing our annual dividend by 20 per cent – a testament to our confidence in the business and ability to generate strong cash flow.”