Dell to layoff 12,500 workers, to focus on AI products and services

This is the second such major layoff announcement in last one year. In 2023, Dell had cut around 13,000 in two rounds, bringing Dell's global workforce from 1,33,000 to 1,20,000.

US-based computer maker Dell Inc. has begun laying off thousands of employees in the global sales team.

There is no word on the number of job cuts, but the official memo seen by Business Insider says the company is planning to downsize the workforce by 10 per cent. It means, there will be at least 12,500 job losses.

In the memo titled 'Global Sales Modernization Update' sent to the employees by senior executives Bill Scannell and John Byrne, it says the company is being reorganised to focus on Artificial Intelligence-based products and services.

There is no word on how many people will be affected in India.

This is the second such major lay-off announcement in the last one year. In 2023, Dell had cut around 13,000 in two rounds, bringing Dell's global workforce from 1,33,000 to 1,20,000.

In this round, most affected employees are in mid-managerial roles with 15 to 20 years of experience.

"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," a sales team employee told Business Insider.

Dell plans to centralise the sales team and modernise the internal operations with AI, which will make some job roles redundant. Also, it will create an 'AI Select Sales Team' focusing on AI services.

"We are getting leaner. We're streamlining layers of management and reprioritizing where we invest. We don't do this lightly as we know these changes impact people and our teams. The destination is going to be worth it — it's about winning and winning big!" said Bill Scannell and John Byrne in a joint memo.

In a related development, Intel earlier this week, also announced reorganising the company by letting go of around 15,000 employees.

The restructuring will help the company to reduce capital spending by up to $10 billion in 2025. Also, to conserve cash, Intel said it will suspend its quarterly dividend in the fourth quarter.

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