Dell cuts thousands of jobs as part of AI-focused restructuring

[Shawn Knight]

In a nutshell: Dell is on track to become a leaner company thanks to a reorganization that will significantly reduce the PC maker's headcount. An internal memo from sales executives John Byrne and Bill Scannell that was viewed by Bloomberg noted the changes, which were later confirmed to multiple publications via public relations. A representative told The Register than Dell's go-to-market teams are being reworked, and that they are prioritizing where they invest across the company.

Dell did not say how many employees would be cut loose although some estimates put the number in the range of 12,500 people.

The Register said most of the losses appear to be in the sales division, and that severance payouts related to the fresh cuts will likely be in the range of two months' worth of pay plus one extra week of pay per year the employee has been with the company (up to a maximum of 26 weeks). There could also be additional partial bonus payouts, the publication said, adding that some longtime employees have reportedly complained about losing long-term incentives like stock options.

ð¨ LAYOFF ALERT - ðÂÂÂ

Dell Technologies Inc. is cutting jobs as part of a reorganization of its sales teams, impacting 12,500 employees approximately, as the company aims to become leaner. pic.twitter.com/oJpZH1Ww92

– The Layoff Tracker ð¨ (@WhatLayoff) August 5, 2024

Dell is not the only tech giant navigating rough waters. Just last week, Intel announced it would be cutting 15 percent of its workforce – or around 16,000 employees – as part of a company-wide reduction in operating expenses and capital expenditures. Intel CFO David Zinsner said the spending reductions are proactive measures to improve profits and strengthen the company's balance sheet. The news did not go over well with investors as shares in Intel are down more than 35 percent since the announcement.

According to Bloomberg, the restructured Dell will focus more on sales of AI-based products and servers. That is a bit of a shift for a company that made a name for itself focusing on sales of personal computers.

Shares in Dell, meanwhile, are down nearly six percent on the day and more than 21 percent over the past five days amid the global selloff.

Image credit: Ben P L

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Dell cuts thousands of jobs as part of AI-focused restructuring

 

[VitalyT]

This all goes one way, with the ex-employees setting the building on fire, and rightfully so.

 

[MasterMace]

They should fire the Board of Directors and replace them with AI

 

[Jme Kerul]

Good.
I'm trying since 6 months to get hold of anyone from the sales dept to start a leasing of equipments from Dell
Nobody seems to care.
Now, they either start caring or start packing.

 

[i like foxes]

 

[daffy duck]

Another day another AI led disaster.

 

[godrilla]

They should fire the Board of Directors and replace them with AI

It is probably inevitable. Who needs organic innovation when corporations can be run at maximum efficiency via autopilot. No sleep, no family, no holiday just pure loyalty for the corporation 24/7.
Great take by Wendel on how Nvidia is ready for the bubble to potentially burst by going into business with its customers.

 

[Vanderlinde]

It was a matter of time. You pick the sections of a company that potentially could be trained through AI. You buy, learn and train the AI modelling required and you test / co-pilot for some time, to finally cut off the human part.

Meta did the same. Hired a tons of people with AI specialism to build on a more AI streamlined FB or IG without having to need any moderation left. Once they accomplished what they where hired for they where fired along the ton of mods.