Dell Technologies has mapped out plans for ongoing workforce reductions throughout Fiscal Year 2025, citing a focus on cost management and strategic realignment. The company has already set aside $400 million for severance payments in the first half of the fiscal year, with additional layoffs expected across multiple departments and locations. If you might be affected by these changes, we've assembled a detailed guide to help you understand what to expect. By sharing your severance offer on fired.fyi, you can gain insights into how your package compares with others and strengthen your negotiating position.

Make informed decisions about your future by adding your severance details to our database, where you'll gain access to valuable package comparisons.

Dell Layoffs 2025: Current Developments

According to Dell's regulatory filing, the company stated that "Throughout Fiscal 2025, we remain committed to disciplined cost management... We anticipate these actions will result in a continued reduction in our overall headcount."

Initial reports indicate that the company has allocated $400 million for severance expenses in the first half of Fiscal 2025, matching their total severance spending from the previous year, which covered 13,000 job cuts across February and August 2023.

The reductions are set to impact various departments and geographic regions, though specific details about affected areas continue to emerge.

Understanding Dell's Historical Severance Packages

Evolution of Dell's Severance Approach

Dell's severance packages combine several key elements that vary based on timing and individual circumstances. The standard package includes:

• Base Pay: Two months' base salary as foundational support
• Tenure Compensation: One week of pay for each full year at Dell
• Bonus: 75% of target bonus, prorated for time worked in fiscal year
• Healthcare: COBRA coverage up to 18 months, with Dell covering first six months

Sample Calculation

For an employee earning $5,000 monthly with 10 years at Dell:

• Base Severance Pay:
  • 2 months x $5,000/month = $10,000
• Tenure-Based Pay:
  • 10 weeks x ($5,000 / 4.33 weeks per month) ≈ $11,540
• Prorated Bonus:
  • Assuming $10,000 annual target bonus and six months worked:
    • $10,000 x 0.5 (half-year) x 0.75 = $3,750
• Total Severance Pay:
  • $10,000 (base) + $11,540 (tenure) + $3,750 (bonus) = $25,290

Additional Benefits

• Outplacement Services:
  • Dell provides resume review services and job placement assistance to support employee transitions
• Accrued Vacation:
  • Payout policies vary based on state regulations and individual circumstances

Variations in Reports

While the components above represent the standard package, some variations exist:

• Healthcare Coverage Duration:
  • Some employees report Dell covering COBRA premiums for two months, while others mention six months
• Bonus Calculations:
  • Eligibility criteria and percentage calculations have varied across different rounds of layoffs
• Total Payout Limits:
  • Information about potential caps on total severance remains limited, particularly for long-tenured employees

Industry Comparison: How Dell's Severance Measures Up

Hewlett-Packard (HP)

HP's recent severance offerings include:

• Severance Pay: Two weeks of pay per year of service
• Payment Timeline: Some former employees note significant delays in receiving promised severance payments, despite contractual commitments for payment within a month

Hewlett Packard Enterprise (HPE)

HPE's severance framework includes:

• Severance Pay: One week of pay per year of service, with a one-month minimum and variable maximum cap
• Additional Benefits: Packages often include two months of COBRA coverage and unused PTO payout

Lenovo

Lenovo structures its severance packages with:

• Severance Pay: One week of pay per six months of service, maxing out at 26 weeks
• Bonus Treatment: Some cases include June bonus paid at 100%, with full performance factors for both business unit and individual
• Healthcare Benefits: Reports indicate three months of post-termination health insurance

Anticipated Dell Severance Packages for 2025

Drawing from Dell's historical practices and current industry standards, employees can likely expect:

Financial Support

• Base Severance Pay: A lump sum matching two months of base salary
• Tenure-Based Additional Pay: One week of pay for each complete year with Dell
• Prorated Bonus: Typically 75% of target bonus, adjusted for time worked in the fiscal year

Healthcare Coverage

• COBRA Benefits: Coverage available for up to 18 months, with Dell covering initial two months

Example Calculation

For an employee earning $5,000 monthly with 10 years of service:

• Base Severance: 2 months x $5,000/month = $10,000
• Tenure Pay: 10 weeks x ($5,000 / 4.33 weeks per month) ≈ $11,540
• Prorated Bonus: With $10,000 annual target and six months worked:
  • $10,000 x 0.5 (half-year) x 0.75 = $3,750
• Total Package: $10,000 (base) + $11,540 (tenure) + $3,750 (bonus) = $25,290

Additional Considerations

• Vacation Time: Dell's approach to unused vacation payout varies by state regulations
• Career Support: Access to resume review services and job placement assistance

Note that individual circumstances and current policies may affect these components. For the most accurate information, consult Dell's official resources or HR department directly.

Looking Ahead

While we await Dell's formal announcement of the specific terms for this year's departures, you can strengthen your position by contributing past severance offers to our growing database of comparisons. Your shared data not only helps you maximize your exit package but also assists others in similar situations. The more data points we collect, the better equipped everyone becomes to negotiate fair severance terms.

Dell has maintained competitive severance practices during previous layoffs, and we expect this trend to continue in 2025. When you receive your severance offer, remember that sharing your package details helps build a more transparent environment for everyone facing similar transitions. While navigating severance negotiations, consider consulting an employment attorney if you encounter any unclear terms or conditions.

Remember, you're not alone in this transition. The insights and support of the fired.fyi community can help you secure the best possible outcome for your next career move.