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Dell lays off thousands of employees but also builds an AI team

  • August 6, 2024
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Dell Technologies follows Intel with a major round of layoffs. Although the number of layoffs has not been officially communicated, it would amount to more than 10,000 people

Dell lays off thousands of employees but also builds an AI team

Dell

Dell Technologies follows Intel with a major round of layoffs. Although the number of layoffs has not been officially communicated, it would amount to more than 10,000 people worldwide.

Dell Technologies is in the midst of a massive round of layoffs. Bloomberg knows this and The Register confirms it. An estimated 12,500 would be laid off as Dell tries to reduce its global workforce from 120,000 to under 100,000. However, this number has not been officially confirmed by Dell.

The round of layoffs would primarily affect the go-to-market teams and certainly the management teams. Other executives are also affected. Dell appears to be using its HR department to its full capacity, even if it is inadequate. According to employees, it seems that there are not enough people available to complete all the layoffs in one day, which is causing uncertainty.

(No) teleworking

Dell has been trying to reduce its workforce for some time. In several countries, including the UK, the computer and server specialist chose to penalize teleworking, which many believe was intended to ensure voluntary departure. Belgium was spared this policy. It is unclear what impact this round of layoffs will have on Dell in Belgium. We have asked Dell for a response and will update this article if necessary.

In any case, Dell seems to want to follow Intel’s lead. The processor manufacturer announced at the end of last week that it would lay off 15,000 employees as part of a major restructuring. The immediate reason for this was disappointing quarterly results.

Focus on AI

In addition to the layoffs, there will also be restructuring. The focus will be on AI, especially in the relevant sales streams. Dell is creating a group with a special focus on AI products and services. The AI ​​portfolio is promising and is driving demand for powerful hardware, but the entire AI story is hype-sensitive. The AI ​​promises are not being fulfilled as quickly as some would like, causing investors to question investments and high valuations.

Dell Technologies remains ambitious to grow, with the goal of outperforming the market with fewer employees.

Source: IT Daily

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