Dell Technologies is undergoing a major restructuring that includes cutting jobs and creating a new group focused on artificial intelligence services, according to people familiar with the matter. The company plans to lay off 12,500 employees, or 10% of its workforce.
Silicon Angle Report Dell is trying to navigate the transformation by cutting a large number of employees and restructuring its sales and marketing divisions, including creating a new group focused on artificial intelligence services, according to people familiar with the matter.
The exact number of layoffs has not been confirmed, but a source familiar with the matter initially suggested that about 12,500 employees, or roughly 10% of Dell’s global workforce, were scheduled to be laid off starting Tuesday. Dell filed a 10-K with the Securities and Exchange Commission in February 2023, indicating roughly 6,000 employee cuts.
The company did not provide specific details about the job cuts. In an email to SiliconANGLE, Dell said, “Through the restructuring of our go-to-market teams and a series of ongoing initiatives, we are becoming a leaner company, consolidating teams and prioritizing where to invest across the company. We continue to evolve our business to ensure we are positioned to deliver the best innovation, value and service to our customers and partners.”
An internal memo from Bill Scannell, president of global sales and operations, and John Byrne, president of global theater and Dell Technologies Direct sales, reportedly told employees, “We are leaning our company. We are streamlining our management hierarchy and reprioritizing our investments.”
Rumors of layoffs are circulating Layoffs On the website, there is a person who claims, “Someone on the corporate side wrote here before that this is a 1% layoff, but it’s actually a lot bigger and it’s impacting services, sales, marketing and engineering. Half my team is gone from marketing and we still don’t have a communications department.”
This latest round of layoffs follows a series of job cuts Dell has made over the past year. The company laid off a total of 13,000 employees last year, including 6,000 in February 2023 and an undetermined number in August, according to CRN.
Dell’s latest quarterly results disappointed investors, causing its stock price to plummet nearly 18% on May 31, the day after the results were released. Analysts expressed concern about the impact of growing demand for artificial intelligence servers on the company’s overall profitability. Dell executives projected that rising AI server configurations, input cost inflation, and increased competition would reduce the company’s gross margin by about 150 basis points in fiscal 2025.
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Lucas Nolan is a reporter for Breitbart News covering free speech and online censorship.
