E-Paper
Tech layoffs: Dell fires 12,500 employees- 10% of global workforce- in AI shift
Dell informed employees of these changes in an internal memo sharing plans to centralise sales teams and create a new AI-focused sales unit.
Dell announced a major reorganisation of its sales division which included layoffs aimed at modernising operations at the computer giant to increase focus on artificial intelligence (AI). Dell informed employees of these changes in an internal memo sharing plans to centralise sales teams and create a new AI-focused sales unit, Business Insider reported.
Read more: German startup is freezing dead bodies to revive them in future for ₹1.8 crore
The company has not officially shared the exact number of affected employees but reports claimed that estimated layoffs could hit approximately 12,500 individuals- about 10% of Dell's workforce.
The memo, titled "Global Sales Modernization Update," was sent by Dell's senior executives Bill Scannell and John Byrne, the report claimed. The executives wrote, “We are getting leaner. We're streamlining layers of management and reprioritizing where we invest."
Read more: How Warren Buffett cut losses with record cash reserve before stock market crash
Top employees affected more?
Multiple employees from Dell's sales division reported being laid off or knowing colleagues who were affected, as per the report. The layoffs primarily impacted managers and senior managers, some with over two decades of experience at the company, a person in the know told the outlet.
They said, “It was mostly managers, directors and VPs. They also hit marketing and operations. They combined organizations and also made the ratio higher for the managers. Now every manager has a minimum of 15 employees."
Read more: UK asks Elon Musk to act responsibly after his ‘civil war’ posts on riots
Another said, “Several managers that have been here for a long time got let go. It just kind of shows you it doesn't matter how much effort you put into this job. As soon as it helps their bottom line, you're gone."
Dell laying off employees every six months?
Dell has has reduced its workforce from 130,000 to approximately 120,000 since February 2023. One employee said, as per the report, “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.”
