Dell To Layoff 12,500 Workers, Focus On AI Products And Services In Major Shift

Dell Layoff: US Based computer maker Dell Inc. announced a significant reorganisation of its sales division which will involve some layoffs. This move is aimed at modernising their operations and putting more emphasis on artificial intelligence (AI). According to Business Insider, Dell shared in an internal memo that it plans to centralise its sales teams and create a new unit dedicated to artificial intelligence (AI).

The exact number of employees affected hasn't been officially confirmed. However, it’s estimated that around 12,500 people which is about 10 percent of Dell’s workforce have been impacted, as per Newsbyte report.

The memo, called "Global Sales Modernization Update," was sent by senior executives Bill Scannell and John Byrne. It outlined the company's plans to simplify management layers and refocus investments. Bill Scannell, president of global sales and operations, and John Byrne, president of sales for Global Theaters and Dell Technologies Direct informed employees, “We are getting leaner. We’re streamlining management layers and reprioritizing our investments.”

The announcement sparked a wave of reactions on social media including LinkedIn and Reddit. Employees expressed a mix of anger and uncertainty about the future especially in the light of the ongoing mass layoffs in the tech industry. One former Dell employee described the layoffs as a “bloodbath” on LinkedIn while another shared that he was let go after 24 years with the company.

Dell isn’t the only tech giant facing layoffs. Just last week, Intel announced plans to save 10 billion dollars by 2025 which involves cutting about 15,000 jobs, or 15 percent of its workforce.