“Dell Cuts 12,500 Jobs, 10% of Workforce, Amid Shift Towards AI Focus”

Dell Technologies has announced significant layoffs affecting around 10% of its global workforce as part of a major restructuring plan aimed at focusing more on artificial intelligence (AI).

In an internal memo, Dell revealed that approximately 12,500 employees will be laid off as the company reorganizes its sales division and shifts its strategic priorities. The memo, titled “Global Sales Modernization Update,” outlines plans to centralize sales teams and create a new AI-focused sales unit. The communication was sent by Dell’s senior executives, Bill Scannell and John Byrne.

Dell’s decision to cut jobs comes as part of its broader strategy to streamline operations and adapt to the evolving technological landscape. The company has not officially confirmed the exact number of layoffs, but reports estimate the figure to be around 12,500, representing about 10% of Dell’s total workforce. The layoffs are expected to primarily impact managers, senior managers, and other high-level employees, including those with decades of service.

The restructuring effort will see a reduction in layers of management and a shift in investment priorities to emphasize AI development. The company aims to make its operations leaner and more agile to better compete in the rapidly advancing tech sector.

Employee Reactions and Impact

The layoffs have affected a significant number of Dell’s employees, particularly within the sales division. Reports indicate that many of those impacted are managers, directors, and vice presidents, some of whom have been with the company for over 20 years. The company has also combined organizations and increased the ratio of employees per manager.

One employee shared their frustration, stating, “It doesn’t matter how much effort you put into this job. As soon as it helps their bottom line, you’re gone.” Another noted the repetitive nature of layoffs, saying, “Every six months we have layoffs. There are no opportunities to move up. I have been looking for a new job outside of Dell for nine months.”

Ongoing Restructuring and Future Outlook

Since February 2023, Dell has reduced its workforce from 130,000 to approximately 120,000. The company’s focus on AI and modernizing its operations is seen as a necessary move to stay competitive in the tech industry. However, the frequent layoffs and restructuring efforts have left many employees uncertain about their futures with the company.

Dell’s shift towards AI underscores the growing importance of artificial intelligence in the technology sector and reflects a broader trend of companies realigning their strategies to meet the demands of an increasingly digital world.

Sources By Agencies

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