Dell Technologies has started the month of August with a drastic decision: the company has announced significant layoffs in its sales and marketing divisions, in an effort to reorganize both areas and focus on a new group dedicated to Artificial Intelligence (AI) services. According to reports from Bloomberg and other media outlets, although the exact number of affected workers has not been confirmed, it is estimated that they could exceed 10,000 and reach over 12,500, representing approximately 10% of the company’s global workforce. However, the final number is likely to be lower.
Strategic restructuring
This move is part of a broader strategy by Dell to adapt to the new demands of the market and improve its operational efficiency. The company has stated that the reorganization will allow for combining teams and prioritizing investments within the company. “Through a reorganization of our sales teams and various measures, we are becoming a leaner company,” said Dell. “We are continuously evolving our business to be ready to deliver the best innovation, value, and service to our partners and customers.”
Impact on employees
Bill Scannell, President of Global Sales and Operations, and the President of Global Theaters Sales and Dell Technologies Direct, internally communicated to employees that the company is “becoming leaner” and that they are “optimizing layers of management and changing investment priorities.” This announcement comes after several months of workforce reductions by Dell. In 2023, the company laid off around 13,000 employees in two rounds, one in February with the departure of 6,000 workers and another in August, with specific numbers undisclosed.
Awaiting the earnings report
On August 29, Dell will present its earnings report, which is expected to reflect the total impact of these layoffs, including expenses related to severance packages and other exit-related measures. In addition to the sales and marketing divisions, other departments such as services and engineering may also be affected by these cuts.
Focus on Artificial Intelligence
The reorganization includes the establishment of a new group focused on Artificial Intelligence services, underscoring Dell’s commitment to adapting to emerging technological trends and remaining competitive in a constantly evolving market. This approach aims to position Dell at the forefront of technological innovation, offering advanced solutions that can meet the growing demands of its customers.
The layoffs announced by Dell Technologies reflect a growing trend among large technology companies to restructure their operations to adapt to a dynamic and competitive market environment. Although these cuts pose a significant challenge to the affected employees, Dell expects that these measures will enable the company to strengthen its position in the global market and lead in innovation and technology services.