Dell is making significant staff reductions as part of its strategic shift towards artificial intelligence (AI) and data center deals. This move marks Dell’s second major round of layoffs within the past 15 months, according to recent reports.
Internal Memo Announces Layoffs
According to a Bloomberg report, Dell’s deals directors, Bill Scannell and John Byrne, disclosed the news of the layoffs in an internal memo sent to employees on Monday. The memo highlighted that Dell is restructuring its sales teams to focus more on AI products and streamline its approach to data center deals, which are crucial for training the latest AI models.
Company’s Statement on Layoffs
Dell confirmed the layoffs in a statement to The Register. The company mentioned, “We’re combining teams and prioritizing where we invest across the company. We continually evolve our business, so we are set up to deliver the best innovation, value, and service to our customers and partners.”
Extent of the Layoffs
While Dell has acknowledged the layoffs, the company has not disclosed the exact number of affected employees. However, SiliconAngle reports that approximately 12,500 Dell workers are being laid off this week, based on information from an unnamed source. A layoff tracker has corroborated this number.
Previous Layoffs and Current Impact
Former Dell employee Ian Armstrong, who worked in the company’s UX design team for eight years, described the recent layoffs as a “massacre” in a social media post. Armstrong noted that Dell has now laid off a total of 24,500 staff in the past 15 months. Earlier this year, Dell reduced its workforce by 13,000, with around half of those cuts occurring in February.
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