March 16 (Reuters) - Dell's total workforce

declined by about 10%, or 11,000 employees, in fiscal 2026, it

said on Monday, a sign that the AI server maker is limiting

external hiring to reduce costs.

The company spent $569 million in severance payments in this

period, compared with $693 million a year ago, its annual report

showed.

Dell had about 97,000 employees as of January 31, down from

about 108,000 employees a year ago. Its workforce had declined

by about 10% in fiscal 2025.

Silicon Valley employees have grown increasingly concerned

about AI disruption in recent months as 60 tech companies have

laid off more than 38,000 employees this year, according to

Layoffs.fyi, a website tracking sector-wide job cuts.

Reuters reported on Friday that social media giant Meta

was planning a sweeping layoff that could affect 20% or

more of its workforce.

Dell, whose shares have risen over 24% so far this year,

said last month that it expects revenue from its key

AI-optimized servers business to double in fiscal year 2027.

In February, it announced a 20% hike in its cash dividend

and an additional $10 billion for its share repurchase program.