Dell Technologies, a US-based company that sells and develops computers and related products and services, laid off its employees from its sales department and added AI experts to become leaner and focused on growth. According to a SiliconANGLE report, Dell plans to sack 12,500 employees worldwide starting Tuesday, August 6. This would be about 10% of Dell’s worldwide workforce of about 120,000. Another source said that the layoff could be larger than this.
However, the company has not provided an exact number on the layoff plan. Dell, in its latest statement, stated that “Through a reorganization of our go-to-market teams and an ongoing series of actions, we are becoming a leaner company.” The company said that they are grouping teams and planning where to invest across the company to deliver the best innovation beyond the value and service to the customers.
Dell president of global sales and operations Bill Scannell and president of sales for Global Theaters and Dell Technologies Direct John Byrne told employees that the company getting leaner. "We are streamlining layers of management and reprioritizing where we invest.”
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Dell has been laying off staff since the COVID-19 pandemic. It laid off almost 13,000 workers worldwide in 2023, including 6,000 in February last year and another in August. Dell shares crashed nearly 18% on May 31, the day after results were reported, as analysts raised concerns about the impact of rising demand for artificial intelligence servers on the company’s overall profitability.