Dell Technologies has recently announced a significant round of layoffs, marking its second reduction in staff within the past 15 months. This decision impacts an estimated 12,500 employees, or approximately 10% of its global workforce, primarily within its sales and marketing divisions. The company has yet to confirm the exact number of affected staff, but reports from layoff trackers and industry sources suggest this figure.
The layoffs come as Dell shifts its strategic focus towards artificial intelligence (AI) and streamlining its operations. In an internal memo, Bill Scannell, President of Global Sales and Operations, and John Byrne, President of Sales for Global Theaters and Dell Technologies Direct, detailed the company’s new direction. “We are getting leaner. We’re streamlining layers of management and reprioritizing where we invest,” they stated.
As of February, Dell employed around 120,000 people globally. This latest reduction follows a previous significant workforce cut in 2023, where the company let go of over 13,000 employees. Dell’s core PC business has struggled to maintain momentum following a surge in demand during the COVID-19 pandemic. The company is now concentrating on optimizing its resources and investing heavily in AI research and development.
Dell’s move to reduce staff is part of a broader reorganization within its sales and marketing teams. A Dell spokesperson highlighted that this reorganization is intended to make the company “leaner” and more efficient in its go-to-market strategies. The company aims to drive growth through AI-powered devices and modern IT solutions.
“Through a reorganization of our go-to-market teams and an ongoing series of actions, we are becoming a leaner company,” the spokesperson explained. The company believes that focusing on AI will help unlock new growth opportunities and better meet customer needs across various platforms, whether online, virtually, or in person.
Dell’s decision reflects a broader trend in the technology sector, where major companies are increasingly restructuring and reducing their workforces. Recently, Intel announced plans to cut 15,000 jobs as part of its own strategic adjustments. This trend highlights the ongoing challenges and shifts within the tech industry as companies adapt to changing market demands and technological advancements.
Dell remains optimistic about its future growth prospects, with an emphasis on leveraging AI to drive innovation and value for its customers. The company’s executives have expressed confidence that these strategic changes will help Dell grow faster than the market and remain competitive in the evolving technology landscape.