(Reuters) - Dell Technologies (DELL.N) reduced its workforce as part of a broader initiative to cut costs that included limiting external hiring and employee reorganizations, it said in a filing on Monday.

As of Feb. 2, 2024, it had nearly 120,000 employees, down from about 126,000 a year earlier.

The layoffs come after sluggish demand for its personal computers for nearly two years partly contributed to a 11% drop in revenue in fourth-quarter earnings posted last month.

Dell expects net revenue in its client solutions group (CSG) - home to PCs - to grow for the entire year, it said on Monday. The segment's revenue had fallen 12% in the fourth quarter.

While Dell cautioned against near-term challenges, the company expects demand to improve and pricing environment to be more competitive in FY 2025.

However, the company expects input costs to rise and added there is likely to be "continued reduction of our other businesses' net revenue as a result of the change in our commercial relationship with VMware".

Dell bought back shares tied to its interest in software maker VMware, paving the way for it to return to the market in 2018. Chipmaker Broadcom (AVGO.O) closed its $69 billion acquisition of VMware last year.

Last year, Dell slashed 6,650 jobs, when it braced for a potential recession and demand for personal computers dwindled.