Dell Laying Off Employees, Creating New AI Group

Dell Technologies is reportedly laying off employees as part of a reorganization of its sales teams.

“Through a reorganization of our go-to-market teams and an ongoing series of actions, we are becoming a leaner company. We are combining teams and prioritizing where we invest across the company,” Dell execs Bill Scannell and John Byrne wrote in a memo to employees.

The sales shake-up includes a new group focused on artificial intelligence (AI) products and services. Additionally, the execs said the company will change how data center sales are approached.

Dell has declined to comment on how many jobs will be affected. However, one source apparently told SiliconANGLE that 12,500 layoffs are planned across the company starting Tuesday. But the number could not be confirmed. That would equate to 10% of Dell’s worldwide workforce of about 120,000. Chatter among Dell employees on online forums suggest the cuts could be much larger.

Dell previously announced a major workforce reduction in early 2023, shedding 13,000 jobs that year.

Earlier this year, Dell sought to mandate employees’ return to the office with a new policy. Dell reportedly stipulated that unless employees return to the office, they will not move up the career ladder.

Unlocking the Value of AI

Related:Recent Tech Layoffs: 2024 Q1 Tracker

Dell has undoubtedly hitched its wagon to AI, looking to provide the infrastructure that enables customers to take advantage of the technology. It aims to do this via the Dell AI Factory, which encompasses the products and features that underpin AI deployments.

The memo to employees said: “We aim to grow faster than the market by seamlessly meeting our customers and partners online, virtually, or in person, to unlock the value of modern IT and AI for their organizations.”

The new layoffs follow a 15% reduction in headcount announced by Intel last week, affecting 15,000 workers.