NEWS  /  Analysis

Dell Lays off Staff in China Amid Supply Chain Shifts and Escalating U.S.-China Trade Tensions

By  xinyue  Apr 14, 2025, 5:51 a.m. ET

Dell entered the Chinese market in 1998 and has long relied on the country for its vast production network and customer base. However, mounting U.S.-China tensions are complicating operations.

(Image Source: Photo by Lin Zhijia, TMTPost AGI Editor)

(Image Source: Photo by Lin Zhijia, TMTPost AGI Editor)

AsianFin -- Dell Technologies has launched a fresh round of layoffs in its China division.

The job cuts reportedly impact around 120 employees, including senior management, with sales and marketing teams bearing the brunt.

The move follows a broader workforce reduction by the U.S. tech giant. In its latest SEC filing, Dell said it had trimmed its global headcount by more than 12,000 employees—roughly 10%—in fiscal year 2025, as part of ongoing cost-cutting and business modernization efforts.

The restructuring in China comes at a sensitive time. Dell is in the midst of diversifying its global supply chain, with plans to shift up to 50% of its production capacity out of China to Southeast Asia by 2025.

The company has asked suppliers to expand operations in Vietnam and Thailand, in response to U.S. export controls and geopolitical uncertainties.

Dell entered the Chinese market in 1998 and has long relied on the country for its vast production network and customer base. However, mounting U.S.-China tensions are complicating operations.

Just last week, U.S. President Donald Trump announced new 145% tariffs on Chinese goods, escalating the trade war. China quickly retaliated with tariffs of its own and new restrictions targeting U.S. firms.

The U.S.-China conflict is already hitting consumer electronics. Bloomberg reported Dell has rolled back promotional discounts on several high-end models in the U.S., with some laptop prices jumping by hundreds of dollars.

In March, Dell CFO Yvonne McGill warned investors that rising input costs, including tariffs, will be passed on to consumers. Meanwhile, rivals like HP and Apple are also exploring production shifts outside of China.

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